Hong Kong's Securities and Futures Commission has committed to separating the Certified Virtual Asset Platform practitioner exam from its mandatory course, reducing assessment fees, and improving study materials following discussions with industry representatives. According to Sing Tao Daily, the commitments were made after the Hong Kong Securities and Futures Professionals Association met with regulatory officials, including Deputy Secretary for Financial Services and the Treasury Chen Haolian and Securities and Futures Commission (SFC) Intermediaries Division Executive Director Ye Zhiheng. The association said the SFC agreed to separate the Certified Virtual Asset Platform (CVAP) examination from its training course, allowing candidates to sit the exam without first completing mandatory classes.
During the meeting, the association raised concerns about several recently introduced virtual asset requirements, including the removal of the previous 10% minimum exemption for virtual asset management and immediate implementation of new rules without a transition period. The association added that many of the new provisions remain principle-based and lack practical operational guidance, making compliance and business planning more difficult for institutions involved in virtual asset activities. Questions were also raised about the governance process behind the CVAP examination, with the association asking whether the examination framework had received formal approval from the SFC's board, given its effect on licensed professionals. The association will continue following up on relevant timelines and communicating with the Financial Services and Treasury Bureau and the SFC on practical issues such as self-custody operation guidelines for private equity funds, the boundaries of technology services and regulated activities, and the VA Payment regulatory framework.
The association urged regulators to ease operational requirements for licensed virtual asset trading platforms while maintaining security standards, proposing allowing more hardware encryption options, reviewing hot and cold wallet ratio requirements, reassessing insurance coverage rules, and improving procedures for on-chain transfers. It further called for clearer guidance distinguishing technology service providers from regulated financial activities, arguing that businesses which do not handle customer assets or collect commissions should not automatically face licensing obligations without detailed classification rules. The SFC acknowledged that growing demand for virtual asset licenses has been accompanied by staffing challenges, contributing to uncertainty over approval timelines.
The association also asked regulators to accelerate approval of virtual asset derivatives, noting that Hong Kong retail investors are currently limited to buying five spot cryptocurrencies—Bitcoin, Ether, Avalanche, Chainlink and Solana—and do not have access to regulated hedging products. According to the association, the SFC acknowledged that growing demand for virtual asset licenses has been accompanied by staffing challenges, contributing to uncertainty over approval timelines. The group recommended that the regulator publish clearer processing schedules and milestone-based guidance to help applicants plan staffing and capital requirements.
The latest discussions come as Hong Kong continues expanding its virtual asset regulatory framework. In May, the Financial Services and the Treasury Bureau and the SFC confirmed plans to introduce licensing regimes for virtual asset advisory and management service providers, extending oversight beyond trading platforms, custody services and stablecoin issuers. More recently, the government said legislation covering virtual asset trading, custody, advisory and management services will continue to be rolled out alongside the city's regulated stablecoin framework, with the first licensed stablecoins expected to enter circulation between the middle and the second half of 2026.
