Hong Kong’s Securities and Futures Commission (SFC) has launched an extensive route map in which strategic initiatives are described that are designed to strengthen the position of the city as a leading global hub for virtual assets.
The “Aspire” route map of the SFC introduces a framework of five Pillair access, guarantees, products, infrastructure and relationships on important aspects of the digital asset-ecosystem, according to the Wednesday of the SFC announcement.
The 12-initiative route map is made to promote growth by improving access to the market, sharpening regulatory protections and expanding the reach of available virtual asset products.
“This route map is not a final destination, but a living blueprint,” said Dr. Eric Yip, executive director of intermediaries at the SFC, adding that “collective efforts invites to promote Hong Kong’s vision as a global hub where innovation thrives in the Gardens.”
If fully implemented, Hong Kong’s watchdog hopes that the route map will create a more inclusive, safe and innovative environment for virtual assets, making Hong Kong a competitive and attractive destination for global platforms and institutional players.
Important pillars of the Aspire Route Card
The Access Pillar is to streamline market entry by introducing new licensing frames for OTC trading and preserves.
The Guarantee pillar focuses on improving investor protection with refined operational requirements and compliance measures, and the Products Pillar is for expanding virtual assets offers, including new token entries and derivatives.
The Infrastructure Pilar modernizes market overview, use of advanced technologies to guarantee market integrity, while the Relationships Pillar promotes cooperation with stakeholders in the industry through continuous dialogue and refinement of regulations.
The SFC is planning to build on its success by offering further clarity and improvements to its regulatory framework, including the introduction of a framework for virtual assets conscious people.
The government’s regulatory approach also includes one judgement From freely available (OTC) trading activities, with expectations for a second consultation round and a definitive license regime for preservators by the end of 2025.
Jodee Lee, head legally at Crypto Exchange Flipster, said Decrypt That the phased approach of Hong Kong for virtual assets regulation “reflects a calculated strategy to balance market growth with risk management.” Lee added that, “by initially only allow access to professional investors, the SFC ensured that trading platforms could refine compliance protocols, implement their operational resilience stress test and investment protection without exposure to private participants.”
In addition to the strategic pillars of the route map, Hong Kong has made remarkable progress in the virtual assets room.
The proactive approach of the SFC includes the introduction of a license regime of a Virtual Asset Trading Platform (VATP) in 2023, designed to give clear guidelines to crypto companies that want to operate in the region.
By February, the SFC had a permit of 10 platforms, including market leaders such as Bullish And hashkey.
Regional competition
While Hong Kong picks up his niche as a leader in virtual assets regulation, it is confronted with growing competition in Asia, especially from Singapore.
The latter expands its digital assets services in the region, where giants like Robinhood set all their sights on the city.
“Both Singapore and Hong Kong operate strict regulations for virtual assets exchanges, Chengyi ong, head of APAC at Chainalysis, said Decrypt. “Ultimately, it is unlikely that the race to attract global companies will be won or lost for legislative factors.”
ONK added that regulators can distinguish themselves by “their efficiency in assessing license applications and their agility in adjusting requirements in accordance with technological developments and feedback from the industry.”
Hong Kong’s new route map is a “pragmatic approach to solidify the role of Hong Kong as a familiar Nexus for virtual assets,” said the SFC.
Daily debrief Newsletter
Start every day with the top news stories at the moment, plus original functions, a podcast, videos and more.