Hong Kong crypto industry wins SFC backing for CVAP exam changes

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 talks with industry representatives.

According to local media, 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 Joseph Chan Ho-lim and Securities and Futures Commission (SFC) Intermediaries Division Executive Director Ye Chi-heng.

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. It added that the regulator also plans to provide official revision materials and lower examination fees to match those charged for existing Paper 2 and Paper 3 licensing exams.

The Certification Programme for Virtual Asset Professionals is Hong Kong’s benchmark professional qualification for the digital asset sector. Administered by the Hong Kong Securities and Investment Institute (HKSI) in alignment with Securities and Futures Commission (SFC) standards, the program validates expertise in blockchain fundamentals, digital asset products, and anti-money laundering (AML) compliance.

Industry raises concerns over new virtual asset rules

During the meeting, the association also raised concerns about several recently introduced virtual asset requirements. It said the removal of the previous 10% minimum exemption for virtual asset management and the immediate implementation of new rules without a transition period have created uncertainty for firms preparing to enter or already operating in the sector.

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. The association asked whether the examination framework had received formal approval from the SFC’s board, given its effect on licensed professionals. 

The SFC did not directly address the question but said the examination is conducted under powers granted by the Securities and Futures Ordinance to improve professional standards and encouraged existing license holders to take the exam as soon as possible.

Beyond the examination, the association said it will continue discussions with the Financial Services and the Treasury Bureau and the SFC on unresolved operational issues. These include guidance for private funds seeking self-custody arrangements, the regulatory boundary between technology service providers and licensed activities, and the framework governing virtual asset payments.

Firms seek clearer guidance as licensing framework expands

The association also urged regulators to ease some operational requirements for licensed virtual asset trading platforms while maintaining security standards. Its proposals included 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.

According to the association, the SFC acknowledged that growing demand for virtual asset licences 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 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.

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.