New BRP Country Manual Cryptos Oveview
Hong Kong
BRP has published its latest Country Manuals Cryptos Overview for
Hong Kong
out of Crypto-Asset service provider’s country of establishment (DEF, RS & RT)
Definitions & Concepts, Regulatory Summary and Behaviour Template
The Country Manual Cryptos Overview has been reviewed to ensure that the content of all the documents remain accurate and up to date.
Material changes
The Cryptos Overview Behaviour Template (BT) reflects the principles set out in the Regulatroy Summary document using schematic “dos and don’ts” that now cover both types of investors (Retail and Professional). However, the position with respect to Professional Investors is generally the same as for Retail Investors.
With regard to advertising utility tokens, it should be noted that actively presenting crypto-asset-related services and providing related marketing documentation in Hong Kong and on a cross-border basis into Hong Kong (remote) triggers local licensing requirements. Therefore, the Cryptos Overview BT now answers the relevant onshore (at target) and cross-border (via remote) scenarios with “NO”.
With regard to execution-only services on utility tokens, it is highlighted that any provision of execution-only services by foreign (unlicensed) CASPs seems only to be tolerated onshore in Hong Kong (at target) on an occasional basis and if the order is transmitted to the CASP’s country of establishment for execution. Accordingly, the Cryptos Overview BT now answers the relevant onshore (at target) with “Grey zone/YES – On an occasional basis. If the order is transmitted to the CASP’s country of establishment for execution”.
Please note that the provision of advisory services/financial consultancy services on utility tokens by foreign (unlicensed) CASPs onshore in Hong Kong (at target) triggers local licensing requirements. The Cryptos Overview BT therefore now answers the relevant onshore (at target) scenarios with “NO”.
In further alignment, the provision of advisory services/financial consultancy services on utility tokens by foreign (unlicensed) CASPs within the framework of an ongoing advisory agreement (ongoing advice) seems only to be tolerated on a cross-border basis into Hong Kong (remote) on an occasional and one-to-one basis, provided there has been no prior active marketing of the service. Accordingly, the Cryptos Overview BT now answers the relevant cross-border scenarios (remote) with “Grey zone/YES – On an occasional and one-to-one basis (if covered by an advisory agreement). No prior active marketing of the service.”
Finally, the provision of advisory services/financial consultancy services on utility tokens by foreign (unlicensed) CASPs outside the scope of a written advisory agreement (spot advice) is not permitted on a cross-border basis into Hong Kong (via remote). Therefore, the Cryptos Overview BT now answers the relevant cross-border scenarios (remote) with “NO” (active solicitation) and “Grey zone/NO” (passive solicitation).
Non-material changes
Some comments and content have been slightly reworded, without introducing substantive changes to better reflect the regulatory situation/current interpretation of the regulatory framework more accurately.
For more information, please contact us: info@brpsa.com
Geneva, May 23rd, 2025