Hong Kong Unveils Plans for Unified Crypto Regulatory Framework

Hong Kong’s Financial Services and the Treasury Bureau unveiled plans for a unified crypto regulatory framework that would expand SFC licensing beyond trading venues to custody, investment advisory and asset management under the Securities and Futures Ordinance. Emphasis on custody rules (multi-signature, cold storage, audits) aims to raise consumer protection and reduce counterparty risk. Markets may view this as supportive for institutional adoption and potential inflows into crypto trading and custody services in Hong Kong, though compliance costs could deter smaller firms. The move is likely to influence regional competition (Singapore, Dubai) and set a regulatory benchmark; legislation is expected in the coming months but no timeline has been fixed.