Hong Kong’s Securities and Futures Commission (SFC) has unveiled a comprehensive roadmap for regulating digital assets, known as the ASPIRe framework. This strategic approach aims to enhance market entry, investor protection, and operational transparency in the rapidly growing digital asset space, which is expected to reach a global market value of over $3 trillion by 2024.
The ASPIRe framework is built on five key pillars: Access, Safeguards, Products, Infrastructure, and Relationships. These pillars serve as the foundation for addressing the complex challenges posed by the evolving digital asset landscape. The framework introduces 12 initiatives that focus on simplifying licensing processes for over-the-counter trading and custody services, refining requirements for storage and technology, and establishing clear product categorization for both institutional and retail investors.
One of the key aspects of the ASPIRe framework is the emphasis on regulatory clarity and standardization. The SFC aims to create new licensing regimes that will enable global trading platforms and liquidity providers to operate under consistent rules and regulations. This approach aligns with Hong Kong’s existing virtual asset trading center, which has already issued licenses to nine platforms with additional applications under review.
In addition to streamlining licensing processes, the ASPIRe framework also prioritizes technology-neutral standards for asset custody and enhances insurance and compensation frameworks to mitigate operational risks and facilitate liquidity provision. These measures are designed to create a more secure and efficient environment for market participants while reducing barriers to entry.
As Hong Kong positions itself as a leading hub for digital assets, initiatives like the ASPIRe framework play a crucial role in driving the city’s crypto leadership strategy. The SFC’s CEO, Julia Leung, highlighted these initiatives at the recent Consensus Hong Kong 2025 conference, underscoring their importance in supporting Hong Kong’s digital asset ambitions.
Furthermore, partnerships between entities like Standard Chartered, Animoca Brands, and HKT to launch a Hong Kong dollar-backed stablecoin demonstrate the growing interest in digital assets within the region. The New Capital Investment Entrant Scheme’s willingness to accept cryptocurrencies as proof of wealth further signals Hong Kong’s commitment to embracing innovative financial technologies.
The SFC’s regulatory approach also aligns with global efforts to harmonize regulatory standards, drawing on guidance from organizations like the Financial Action Task Force and IOSCO. By prioritizing investor education and transparent engagement, the SFC aims to foster a market environment where both retail and institutional investors can participate with confidence.
Overall, the ASPIRe framework sets a clear path for Hong Kong’s digital asset regulation strategy, integrating regulatory measures that balance compliance and market dynamics. The SFC has committed to implementing the outlined initiatives under its regulatory principles, underscoring its dedication to promoting a safe and vibrant digital asset market in Hong Kong.