The Hong Kong Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) jointly released a draft licensing regime for digital asset trading and custody services, launching a two-month public consultation period ending on August 29, 2025. The regime proposes that all entities operating related businesses in Hong Kong must hold valid licenses, with no transition period allowed. The SFC will be responsible for licensing and formulating regulatory standards, while the Hong Kong Monetary Authority (HKMA) will supervise banks and other institutions in their implementation. The new rules aim to establish a comprehensive regulatory framework for digital assets covering trading, custody, asset management, and other links.