On February 19, 2025, the Hong Kong Securities and Futures Commission (SFC) officially released the highly anticipated virtual asset regulatory roadmap - "ASPIRe", which lists 12 major measures under five pillars. The roadmap aims to enhance the security, innovation and growth potential of Hong Kong's virtual asset market and promote Hong Kong to become a global virtual asset center.

Five pillars and 12 initiatives of the "ASPIRe" roadmap

1. Access: Simplify market access through regulatory clarity, establish a licensing system for over-the-counter (OTC) and custody services, and attract global platforms, order flows and liquidity providers.

2. Safeguards: Optimize compliance burdens without compromising security, explore dynamic custody technologies and storage ratio methods, enhance insurance and compensation frameworks, and clarify investor entry and product classification.

3. Products: Expand products and services based on investor classification, explore new token listings and virtual asset derivatives trading frameworks for professional investors, explore margin financing requirements consistent with securities market safeguards, and consider allowing pledge and lending services under clear guidelines.

4. Infrastructure: Adopt modern reporting, monitoring, and cross-institutional cooperation. Consider efficient reporting solutions and deploy advanced tools to detect illegal activities, strengthen local cross-institutional cooperation and promote cross-border cooperation.

5. Relationships: Empower investors and the industry through education, participation and transparency, consider a regulatory framework for financial influencers to address new investor engagement channels, and cultivate sustainable communication and talent networks.

The most eye-catching measures in the roadmap include allowing pledge and lending services, developing a licensing system for cryptocurrency over-the-counter (OTC) and custody services, and exploring virtual asset margin financing requirements that are aligned with securities market risk management measures. These measures are believed to help Hong Kong licensed trading platforms launch more new products and stimulate market trading volume.

Promoting Hong Kong to become a global virtual asset center

SFC Chief Executive Officer Leung Fung-yee said at the "Consensus Hong Kong Conference 2025" that Hong Kong's virtual asset regulation has entered the second stage and needs to think about how to provide a growth-enhancing regulatory framework to support responsible innovation and connect global liquidity. She emphasized that the SFC is committed to providing a clear and consistent regulatory framework to support responsible innovation and promote Hong Kong's development into a global virtual asset center.

Before the release of the "ASPIRe" roadmap, the Hong Kong SFC also held its first virtual asset advisory group meeting with licensed virtual asset trading platforms on February 14. It is understood that the group is chaired by Ye Zhiheng, Executive Director of the Intermediary Department of the Hong Kong SFC, and its members include all licensed virtual asset trading platforms, represented by their senior management. The group aims to provide advice to the SFC on the formulation of regulatory policies and promote the development of a sustainable and resilient virtual asset ecosystem.

Diao Jiajun, Executive Director and Head of Regulatory Affairs of OSL Group, the first digital asset platform licensed by the SFC in Hong Kong, said that the digital asset market is in a rapid development stage, with an increasing number of related derivatives and a rapidly changing market. He believes that the release of the roadmap reflects the government's emphasis on the long-term healthy development of the virtual asset industry, especially in ensuring the financial health and sustainability of the industry.

Hong Kong Legislative Council member and Chairman of the Web3 Virtual Asset Development Subcommittee Wu Jiezhuang also welcomed the SFC's move. He pointed out that although Hong Kong already has 10 licensed virtual asset trading platforms, the trading volume is relatively low, mainly due to strict supervision and a small number of tradable currencies. He believes that the new roadmap will help increase the turnover of Hong Kong's virtual asset market.

In addition, the SFC pointed out that the global virtual asset market value has exceeded US$3 trillion, and the trading volume exceeded US$70 trillion last year. Although institutional investors occupy an important position in the market, retail investors are still key, especially in emerging markets. With the booming speculative trading of memecoins and decentralized platforms, the need to develop a regulatory framework to protect vulnerable participants and promote innovation has become increasingly prominent.

The release of the "ASPIRe" roadmap marks an important step forward in Hong Kong's virtual asset regulation and market development. Through a clear regulatory framework and multi-stakeholder collaboration, Hong Kong is expected to become a global leader in the virtual asset sector, providing a safe, innovative and diversified environment for investors and market participants.