Key Takeaways
- Hong Kong’s digital asset industry is evolving at lightning speed, and time is of the essence for those looking to capitalise on emerging opportunities. Hong Kong’s forward-leaning position on Web3 development, underpinned by the government’s recent LEAP framework, is set to benefit early movers, who stand to gain from an ecosystem designed to foster responsible innovation and sustainable growth.
- Hong Kong’s proactive policy direction will open doors for firms to tap into the digital assets market, with regulatory clarity being a key differentiator
- The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) have opened – or are preparing – licence application windows for stablecoin issuers, virtual asset trading platforms (VATPs), and digital assets custodians
- Enforcement schedules are fast approaching
- The time to act is now. Evidence indicates that once initial licensing windows close, entering the market becomes exceptionally more difficult. Take, for example, the Stored Value Facilities (SVF) regime: of the 15 licence holders in Hong Kong, only two were granted licences after November 2016 - the point at which the transitional period ended and mandatory licensing commenced.
- Unlicensed players are being phased out across APAC with regulatory developments and enforcements taking place; prospective licence applicants must act swiftly while Hong Kong’s licensing pathways remain open to secure strategic long-term market share.
How We Can Help
- Quinlan & Associates has deep expertise and hands-on experience in supporting regulatory licensing applications and engagement efforts in Hong Kong, allowing us to help you seize these opportunities ahead.
- Strategic Business Case Development
- Financial Modelling & Sustainability Planning
- Operating Model Development & Policy Drafting
- Risk Management & Governance Design
- Technology & Cybersecurity Frameworks
- Regulatory Engagement & Issue Management
- Training Workshops & Capacity Building
