Hong Kong Aims for 2026 Crypto Law: New Rules for VASP Licensing & Custody

Hong Kong's financial regulators have set a clear timeline, targeting 2026 for the introduction of new legislation specifically governing virtual asset service providers (VASPs). The proposed law will establish a comprehensive licensing framework for both virtual asset dealers and custodians, moving beyond the current opt-in regime. This initiative aims to enhance investor protection and align the city's regulatory environment with international standards. The announcement signals Hong Kong's continued commitment to developing a structured and secure ecosystem for digital assets like Bitcoin (BTC) and Ethereum (ETH). The 2026 target provides the market with a clear regulatory horizon for future compliance and growth.