Hong Kong Pushes Ahead with Digital-Asset Licensing Regime Amid US Regulatory Uncertainty

Hong Kong is pushing forward with a new digital-asset licensing regime that aims to bring clarity and regulation to the sector. According to Duncan Chiu, a member of Hong Kong's Legislative Council responsible for science and technology innovation matters, the bill tied to this new regime is scheduled to be discussed in the Legislative Council in the second half of this year.

The goal is to secure passage by the end of 2023 or early next year, at which point most licensing requirements for Hong Kong's digital-asset businesses will become clear. This includes trading services and custody service providers, which will be brought into the regulatory framework. The Securities and Futures Commission and other financial authorities have held joint consultations on introducing the related system.

Chiu also noted that the failure of the US crypto market structure bill, known as the Clarity Act, could work in Hong Kong's favor over the long term. If regulatory uncertainty persists in the US, it may strengthen Hong Kong's competitive position in attracting global digital-asset companies.