Hong Kong authorities urge self-regulation for the city’s cryptocurrency sector

The Hong Kong Securities & Futures Professionals Association (HKSFPA) has suggested that crypto companies in the city establish a self-regulatory committee and monitor each other’s compliance.
In a letter of recommendation dated April 22, the HKSFPA expressed its belief that the Hong Kong financial market industry is too focused on supervision and lacks an organization to oversee its overall development. The association emphasized the importance of Hong Kong maintaining its competitiveness in the global securities market and consolidating its status as an international financial center.
To achieve these goals, the HKSFPA proposed that the city’s regulator, the Securities & Futures Commission (SFC), establish statutory self-regulating and autonomous bodies that would delegate licensing powers to industry players. This approach would provide a balanced supervision and development framework for the virtual assets industry in Hong Kong, preventing excessive regulatory control.
It is worth noting, however, that self-regulation does not always come without risks. Lithuania, for example, is tightening its crypto regulations from 2025 onwards due to compliance failures and embezzlement cases. Despite this, Hong Kong regulators have shown more tolerance towards virtual asset firms compared to regulators in other parts of the world.
On April 15, the SFC granted approval for spot Bitcoin and Ether exchange-traded funds (ETFs) to issuers such as Harvest Fund Management, Bosera Asset Management, and China Asset Management (ChinaAMC). The regulator also issued official virtual asset licenses to crypto exchanges Hashkey and OSL last year.
In contrast, the U.S. Securities and Exchange Commission has yet to approve a spot Ether ETF or provide specific licenses for crypto exchanges to register. The current outlook for these approvals remains pessimistic.
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