Hong Kong’s Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) have finished consultations on a legislative proposal to regulate virtual asset (VA) custodian services. The proposed ruleset will require crypto firms to obtain a license under the  Anti‑Money Laundering and Counter‑Terrorist Financing Ordinance (AMLO).

The move to provide clear regulatory oversight over companies providing custody and other crypto services marks a significant step in Hong Kong’s growing presence as a crypto hub. Moving on, a bill is expected to be introduced into the Legislative Council next year.

This tightening of the rules comes only a few years after the region officially licensed crypto…