Hong Kong has finalised its regulatory framework for the digital asset industry, wrapping up a public consultation on a new licensing regime for firms advising on and managing virtual assets.

Signalling a milestone in the city’s quest to become a global crypto hub, the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) said on Tuesday that the proposed rules received “broad market support” and would head to the Legislative Council later this year.

The regulators launched the one-month consultation in December, modelling the new requirements after existing frameworks in the traditional securities market.

SFC chief executive Julia Leung Fung-yee said the conclusion of this consultation marked the “final leg of our journey to complete the regulatory framework for digital assets”.

Under the new rules, firms providing advice or market analysis on virtual asset trading must meet strict capital requirements. Companies that do not hold client assets must maintain a minimum liquid capital level of HK$100,000 (US$12,762). All other firms are required to hold at least HK$5 million in paid-up share capital and HK$3 million in liquid capital.

Advisory and management firms must also comply with know-your-client protocols, conduct virtual asset knowledge assessments for clients, and adhere to marketing restrictions regarding the Hong Kong public.