Hong Kong Unveils "ASPIRe" Roadmap, a 12-Point Plan to Strengthen its Virtual Asset Ecosystem

With crypto regulations still unfinished, Philippine regulators could view Hong Kong's ASPIRe roadmap as a guide to enhance licensing, investor protection, and market infrastructure

Hong Kong’s Securities and Futures Commission (SFC) has unveiled its “ASPIRe” roadmap, a strategic plan focusing on 12 key initiatives to bolster the city’s virtual asset ecosystem.

The ASPIRe roadmap, derived from “Aspirations for a vibrant ecosystem of virtual assets in Hong Kong,” aims to enhance market access and regulatory provisions, and expand virtual asset offerings in a controlled manner.

The plan is designed to establish Hong Kong as a global hub for virtual asset liquidity while ensuring investor protection and fostering innovation in line with the government’s broader digital economy agenda.

“This roadmap is not a final destination but a living blueprint,” said Dr. Eric Yip, Executive Director of Intermediaries at the Securities and Futures Commission.

“It will evolve with the dynamic landscape of virtual assets and invites collective efforts to advance Hong Kong’s vision as a global hub where innovation thrives within guardrails.”

Hong Kong’s ASPIRe roadmap: Key initiatives

The SFC’s roadmap is divided into four core pillars: market access, regulatory safeguards, market infrastructure, and fostering innovation.

Each pillar is further broken down into three initiatives, totaling 12 key areas of focus.

Pillar 1: Market Access

* Expand virtual asset offerings to include new asset classes and investment products in a calibrated manner, taking into account market demand and the need to maintain regulatory balance.

* Streamline and enhance the licensing framework for virtual asset service providers to facilitate market entry and promote competition among service providers.

* Promote cross-border cooperation and mutual recognition of regulatory frameworks to facilitate seamless virtual asset services across different jurisdictions.

Pillar 2: Regulatory Safeguards

* Strengthen Know Your Customer (KYC) and anti-money laundering (AML) procedures to align with international standards and mitigate financial crime risks.

* Develop a comprehensive framework for investor protection, focusing on risk disclosure, suitability assessments, and complaint handling mechanisms.

* Enhance cybersecurity measures for virtual asset platforms and service providers to safeguard user funds and data privacy.

Pillar 3: Market Infrastructure

* Promote the development of a robust and liquid market ecosystem for virtual assets, encouraging the listing of leading virtual asset issuers.

* Facilitate the use of new technologies, such as distributed ledger technology (DLT), to improve efficiency and reduce costs in market operations.

* Foster collaboration among market participants, regulators, and industry stakeholders to promote best practices and drive innovation in the virtual asset sector.

Pillar 4: Fostering Innovation

* Create an enabling environment that encourages the development of new virtual asset technologies and applications.

* Support research and talent development in areas related to virtual assets and digital finance.

* Engage in international dialogue and cooperation on emerging trends and challenges in the virtual asset domain.

The ASPIRe roadmap marks a significant step in Hong Kong’s efforts to become a leading center for virtual assets in the region and globally.

The plan’s focus on investor protection, technological innovation, and a balanced regulatory approach could serve as a model for other financial hubs in their own endeavors to develop vibrant and sustainable virtual asset ecosystems.