New licensing regime for Virtual Asset Service Providers in Hong Kong

In view of the increasing popularity of virtual asset (“VA”) and VA-related activities to the retail sector in Hong Kong, a new licensing regime for Virtual Asset Service Providers (“VASP”)was introduced in June 2022. Under the new licensing regime, any person who seeks to carry on a business of providing “Virtual Asset Service” is required to apply for a licence from the Securities and Futures Commission. This new licensing regime will further increase the regulatory net for virtual asset-related activities in Hong Kong.