Promote Hong Kong's development as a global virtual asset center

The Hong Kong Securities and Futures Commission (Hong Kong Securities and Futures Commission) released the newly formulated "ASPIRe" roadmap in mid-February, listing 12 major measures under the five pillars, aiming to continuously strengthen the security, innovation and growth of the Hong Kong virtual asset market.

Relevant measures will promote the access to global liquidity, and realize a security-oriented adaptive compliance and product framework, and promote the infrastructure upgrade of traditional finance using the efficiency of blockchain technology. Next, we will introduce the main measures of the "ASPIRe" roadmap in detail.

The main measures of the "ASPIRe" roadmap

Connect (Access)

Mainly simplify market access through regulatory clarity. Specific measures include: establishing a license system for over-the-counter trading (OTC trading) and custodial services; attracting global platforms, order flow and liquidity providers.

Safeguards

Enterprise is designed to optimize compliance burdens without affecting security. There are three related measures, namely, exploring dynamic custody technologies and storage ratios methods; enhancing insurance and compensation frameworks; and clarifying investor entry and product classification.

Products

The principle is to expand products and services based on investor classification. Measures include: Exploring a framework for new token listing and virtual asset derivatives trading for professional investors; Exploring guaranteed financial requirements consistent with securities market safeguards; and considering allowing pledge and lending services under clear guidelines.

Infrastructure

Use modern reporting and monitoring to carry out cross-institutional cooperation. Measures include considering efficient reporting solutions and deploying advanced tools to detect illegal activities; strengthening local cross-agency cooperation in Hong Kong and promoting cross-border cooperation.

Contact (Relationships)

Enable investors and industries through education, engagement and transparency. The initiative is to consider a regulatory framework for financial influencers to cope with new channels of investor participation; to cultivate sustainable communication and talent networks.

The new roadmap adheres to the core principles of investor guarantee, sustainable liquidity and flexible supervision, accurately responds to the challenges of emerging virtual asset markets, and leads the Hong Kong virtual asset ecosystem to the future1. Hong Kong attaches great importance to promoting the development of virtual assets, and its market potential is huge. In 2024, the global virtual asset market will be worth more than US$3 trillion, and the transaction volume will exceed US$70 trillion.2. Therefore, Hong Kong has been taking diversified measures to build a vigorous virtual asset ecosystem.

Diverent measures to build a virtual asset ecosystem

Attracting the currency circle event Consensus settled in Hong Kong

Under the active promotion of Hong Kong, the world's oldest and influential cryptocurrency and Web3 event "Consensus" Conference first settled in Hong Kong in mid-February. It is also the first time this industry event has been held outside the United States in five years, which is of great significance to Hong Kong's development of virtual assets. The event held a number of meetings and competitions, which are not only a stage for technology display, but also a communication platform for widely making friends with industry insiders, promoting different cooperation, and continuously promoting the development of virtual assets in Hong Kong.

Hong Kong Investment and Promotion Agency Global President, Financial Services and Technology, Sustainable Development Leung Han-kyung (second from right) attended Consensus as a guest speaker

Hong Kong Securities and Exchange Commission held a virtual asset consulting group meeting with a licensed virtual asset trading platform for the first time in February, aiming to provide valuable contributions to the formulation of supervision by the Hong Kong Securities and Exchange Commission, and assist in setting the focus of market development, paving the way for market and regulatory development based on investor protection, and further promoting the development of Hong Kong's sustainable and resilient virtual asset ecosystem.

Asia's first batch of virtual asset spot ETFs are listed in Hong Kong

In April last year, the Hong Kong Stock Exchange (HK Exchange) successfully listed the first batch of virtual asset spot ETFs in Asia.Spot ETFs are planned to be asset-based, increasing the product types of the Hong Kong market and providing investors with richer choices, enhancing the product types and liquidity of products bought and sold by the Hong Kong Stock Exchange, and continuously consolidating Hong Kong's position as the leading ETF market in Asia, greatly enriching the ETF market and the virtual asset ecosystem. The second declaration on the development of virtual assets is about to be issued soon

The 2025-26 fiscal budget" points out that Hong Kong's virtual asset ecosystem is leading the world with a framework of equal emphasis on supervision and market development. This year, it will issue the second declaration on the development of virtual assets, discussing how to combine the advantages of traditional financial services and technological innovation in the field of virtual assets to improve the security and flexibility of real economic activities, and also encourage local and international companies in Hong Kong to explore the innovation and application of virtual asset technology.

Upended by the guidance of the new roadmap and multiple favorable measures, the Hong Kong virtual asset ecosystem will usher in a new round of development boom. Hong Kong and the industry work together to promote Hong Kong's development as a global virtual asset center while protecting investors!

Reference materials:

1. Hong Kong Securities Regulatory Commission, "SFC formulates a new roadmap to promote Hong Kong's development as a global virtual asset center"

2. Hong Kong Wenhui.com, "Hong Kong Securities Regulatory Commission releases virtual asset roadmap, intending to allow pledge and margin loans"

3. Hong Kong Wenhui.com, "Consensus settled in Hong Kong for the first time in the currency circle event, Members of Congress: Provide a good platform for the industry"

4. Hong Kong Securities Regulatory Commission, "The CSRC held its first meeting of virtual assets advisory group"

5. Hong Kong Stock Exchange, "Hong Kong Stock Exchange welcomes the listing of the first batch of virtual asset spot ETFs"

6. 2025-26 fiscal budget, "Consolidate and enhance advantageous industries-International Financial Center"