The Hong Kong Securities and Futures Professionals Association criticized proposed changes to virtual asset management rules, arguing they could deter traditional asset managers from investing in cryptocurrencies. The new regulations would remove a threshold allowing minor crypto allocations without a full license, increasing compliance costs for minimal exposure.

Hong Kong's Securities and Futures Commission will let local crypto exchanges connect to global liquidity pools through shared order books. This change aims to improve price discovery and competitiveness for local investors while relaxing some trading history requirements for tokens and stablecoins.

China's securities regulator has advised local brokerages to pause their real-world asset (RWA) tokenization business in Hong Kong, reflecting concerns over the rapid growth of digital assets. The move comes as Hong Kong seeks to establish itself as a digital assets hub despite China's cautious stance on cryptocurrency.