Hong Kong’s Securities and Futures Commission (SFC) hosted the first meeting of its Virtual Asset Consultative Panel (VACP) on February 14, marking a significant step in shaping the city’s cryptocurrency regulatory framework.
According to the official announcement, the panel—led by SFC Executive Director Dr. Eric Yip—gathers top executives from all licensed cryptocurrency trading platforms in Hong Kong. Its primary mission is to protect investors while fostering a strong and sustainable crypto ecosystem.
Dr. Yip emphasized the panel’s role in setting regulatory priorities and promoting innovation, stating:
“The VACP is part of the SFC’s proactive engagement with SFC-licensed VATPs. It enhances sustainable growth in the virtual asset ecosystem and helps set priorities for market development.”
Key Topics Discussed at the Meeting
During the inaugural meeting, members discussed critical regulatory priorities, including:
- Establishing clear policies for virtual assets
- Expanding the crypto market while ensuring compliance
- Balancing regulations with innovation to encourage industry growth
As the crypto industry evolves, the SFC aims to create a regulatory framework that allows companies to flourish while adhering to compliance standards.
Hong Kong’s Push to Become a Global Crypto Hub
Hong Kong has been making significant efforts to position itself as a leading cryptocurrency hub. Unlike other jurisdictions, the SFC is focused on fostering a thriving yet tightly regulated digital asset market.
Recent developments include:
- SFC’s proposal to expand its staff by adding 15 new members, with eight dedicated to virtual asset regulation.
- A 7.2% budget increase in 2025–2026, raising total spending to HK$2.59 billion ($332.4 million) to support regulatory oversight.
Institutional Adoption Grows in Hong Kong
In a related move, the SFC recently approved HashKey Capital, a leading cryptocurrency exchange, to manage digital assets under its Type 9 license. This enables the firm to offer over-the-counter trading, derivatives, and spot crypto trading for high-net-worth clients.
These regulatory advancements reflect Hong Kong’s commitment to integrating institutional players into its digital asset economy, reinforcing its ambition to become a key global hub for cryptocurrency and blockchain innovation.
