The Securities and Futures Commission (SFC) outlined 12 key initiatives under the SFC virtual asset ASPIRe roadmap to enhance Hong Kong’s virtual asset (VA) market on 19 February 2025. The framework focuses on five pillars: Access, Safeguards, Products, Infrastructure, and Relationships.

The initiative aims to make global liquidity more accessible, improve compliance and product frameworks with a focus on security, and upgrade infrastructure to help traditional finance benefit from blockchain efficiency.

The roadmap includes the development of new regulatory frameworks for virtual asset over-the-counter trading and custodial services, expansion of VA product and service offerings, and the optimisation of operational requirements for VA trading platforms.

Additional measures focus on addressing illicit activities, investor education, and stakeholder engagement.

As part of the Relationships pillar, the Virtual Asset Consultative Panel (VACP) convened its first meeting on 14 February 2025. The panel, chaired by Dr Eric Yip, SFC’s Executive Director of Intermediaries, consisted of senior management from all licensed virtual asset trading platforms (VATPs).

Discussions focused on industry collaboration to enhance regulatory standards, align compliance expectations, and strengthen investor protections under the ASPIRe roadmap. The VACP aims to refine policy priorities and improve regulatory transparency through ongoing engagement with market participants.

Dr Eric Yip, the SFC’s Executive Director of Intermediaries, stated,

“The roadmap is not a final destination but a living blueprint, one that invites collective efforts to advance Hong Kong’s vision as a global hub where innovation thrives within guardrails. Adhering to the core principles of investor protection, sustainable liquidity and adaptive regulation, the roadmap in itself is a calibrated response to emerging VA market challenges and thus helps future-proof our ecosystem.”

The SFC plans further consultations and engagements to refine regulatory measures and support innovation within the ASPIRe roadmap.

The SFC virtual asset ASPIRe roadmap possibly aligns with the SFC’s broader efforts to enhance Hong Kong’s financial market through regulatory innovation.

In January 2024, the SFC introduced its Strategic Priorities for 2024-2026, a framework focused on market resilience, fintech adoption, and investor protection. This initiative also included measures to refine the regulatory framework for VATPs.

Source of image: Edited from Freepik