SFC and UAE’s Capital Market Authority sign milestone MoU to strengthen cross-border digital asset collaboration
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Crypto ExchangeFintech
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Crypto & Digital Assets in Hong Kong
Crypto & Digital Assets regulatory updates from Hong Kong.
SFC reprimands and fines Saxo Capital Markets HK Limited $4 million for regulatory breaches over distribution of virtual asset-related products
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AI Analysis
The Securities and Futures Commission (SFC) reprimanded and fined Saxo Capital Markets HK Limited (SCMHK) HK$4 million on 6 January 2026 for breaching regulations by distributing unauthorised virtual asset (VA) funds and VA-related products to retail clients via its online platform from 1 November 2018 to 25 November 2022. This enforcement action underscores the SFC's strict enforcement of suitability, due diligence, and professional investor-only restrictions for complex VA products, serving as a warning to intermediaries about online distribution risks. It matters because it highlights gaps in group-wide protocols and the need for robust VA-specific controls, especially post-SFC circulars mandating PI-only access. #
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Broker DealerAll Firms
FSTB and SFC conclude consultations on virtual asset dealer and custodian regimes, further consult on two new regimes
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AI Analysis
The Financial Services and the Treasury Bureau (FSTB) and Securities and Futures Commission (SFC) have concluded consultations launched on 27 June 2025 on licensing regimes for virtual asset (VA) dealers and VA custodians, confirming legislative proposals to regulate these activities while further consulting on new regimes for VA advisers and asset managers. This advances Hong Kong's comprehensive VA regulatory roadmap, mandating SFC licensing for core VA dealing (e.g., VA-to-VA conversions, broker-dealer services) and custody (focusing on private key safekeeping), with strict requirements for asset segregation and use of licensed custodians to mitigate risks like insolvency, fraud, and cyberattacks. It matters for compliance professionals as it closes gaps in VA oversight, enforces Type 1/Type 13-equivalent standards, and signals accelerated implementation in 2026, potentially reshaping market structures for trading, custody, and related services. #
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Crypto ExchangeBroker DealerBank