The Hong Kong government has initiated the establishment of an integrated regulatory framework encompassing the entire cryptocurrency industry.

The Financial Services and the Treasury Bureau (FSTB) announced through its official website that it plans to introduce a new regulatory framework, following the existing cryptocurrency exchange platform licensing system and stablecoin issuer regulations. The core of this regulation is to comprehensively cover related services such as trading, custody, investment advisory, and asset management.

According to the regulatory proposal, institutions providing related services in Hong Kong must be licensed or registered by the Securities and Futures Commission (SFC). The legal basis for this regulation will be the current Securities and Futures Ordinance.

In particular, for the crypto custody service sector, the plan is to significantly enhance investor protection by designating the private key management system and client asset protection as key areas of supervision.