Hong Kong’s Securities and Futures Commission has agreed to decouple its Certified Virtual Asset Platform exam from mandatory training, cut exam fees, and provide official study materials, following talks with the Hong Kong Securities and Futures Professionals Association.
The commitments include separating the Certified Virtual Asset Platform (CVAP) examination from its mandatory training course, reducing examination fees, and providing official study materials to candidates. The changes are expected to lower barriers to entry for professionals seeking licenses in Hong Kong’s rapidly growing virtual asset sector.
The agreement follows a meeting between the Hong Kong Securities and Futures Professionals Association and senior government officials, including Joseph Chan Ho-lim, Deputy Secretary for Financial Services and the Treasury, and Ye Chi-heng, Executive Director of the Intermediaries Division at the Securities and Futures Commission (SFC).
Industry representatives welcomed the regulator’s willingness to listen to market participants while emphasizing that several operational and regulatory questions remain unresolved.
Hong Kong SFC eases access to professional certification
The Hong Kong SFC agreed that candidates pursuing the Certified Virtual Asset Platform qualification will no longer be required to complete mandatory training before sitting the examination. Instead, applicants will be allowed to take the exam independently, providing greater flexibility for experienced professionals entering the sector.
The regulator also committed to lowering examination fees so they align with those charged for the existing Paper 2 and Paper 3 licensing examinations. In addition, official revision materials will be made available to improve transparency and help candidates better prepare.
The Certification Programme for Virtual Asset Professionals serves as Hong Kong’s primary professional qualification for individuals working in the digital asset industry. Administered by the Hong Kong Securities and Investment Institute (HKSI) under standards established by the SFC, the program evaluates candidates on blockchain technology, virtual asset products, regulatory compliance, and anti-money laundering (AML) requirements.
According to the association, these reforms should make the certification process more practical while ensuring professional standards remain high across the industry.
Industry presses for clearer virtual asset rules
While welcoming the certification reforms, industry representatives used the meeting to highlight broader concerns surrounding Hong Kong’s expanding regulatory framework.
The association argued that recently introduced virtual asset requirements have created uncertainty for firms because some changes took effect immediately without transition periods. It also noted that removing the previous 10% minimum exemption for virtual asset management has added compliance challenges for businesses either preparing to enter the market or already operating under existing rules.
Another concern involves the principle-based nature of several new regulatory requirements. Industry participants said that while the objectives are understood, many firms need more detailed operational guidance to implement the rules effectively.
Questions were also raised over the governance of the CVAP examination itself. The association asked whether the examination framework had received formal approval from the SFC board, given its direct impact on licensed professionals.
In response, the Hong Kong SFC did not specifically address the governance question but reiterated that the examination is conducted under powers granted by the Securities and Futures Ordinance to enhance professional competency. The regulator also encouraged current license holders to complete the examination as early as possible.
The discussions are expected to continue between the association, the Financial Services and the Treasury Bureau, and the SFC as both sides work toward resolving outstanding implementation issues.
Firms seek more practical licensing framework
Beyond certification, the industry has urged regulators to introduce more practical operational rules for licensed virtual asset businesses.
Among the proposals submitted were requests to expand approved hardware encryption options, review requirements governing hot and cold wallet allocations, reassess insurance obligations, and streamline procedures for blockchain-based asset transfers.
The association also called for clearer distinctions between technology service providers and regulated financial service providers. Industry representatives argued that companies offering software or infrastructure without holding customer assets or earning commissions should not automatically fall within licensing requirements unless explicit classification guidance is provided.
Another issue discussed involved licensing timelines. According to the association, the Hong Kong SFC acknowledged that rising demand for virtual asset licenses has placed pressure on regulatory resources, contributing to uncertainty over application processing times.
The industry has recommended publishing clearer review schedules and milestone-based guidance so applicants can better plan staffing, operational readiness, and capital allocation while awaiting regulatory approval.
The association further urged regulators to accelerate approval of virtual asset derivatives. At present, Hong Kong retail investors are limited to purchasing five spot cryptocurrencies—Bitcoin, Ether, Avalanche, Chainlink, and Solana—without access to regulated derivative products that could provide hedging opportunities.
Hong Kong continues expanding its digital asset strategy
The latest discussions arrive as the Hong Kong SFC continues broadening oversight across the city’s digital asset ecosystem.
Earlier this year, the Financial Services and the Treasury Bureau and the SFC confirmed plans to introduce licensing regimes covering virtual asset advisory and management service providers, expanding regulation beyond trading platforms, custodians, and stablecoin issuers.
Authorities have also outlined plans to progressively implement legislation governing virtual asset trading, custody, advisory, and management services alongside Hong Kong’s regulated stablecoin framework. Officials expect the first licensed stablecoins to begin circulating between the middle and second half of 2026.
Industry observers believe the reforms demonstrate that regulators are becoming increasingly responsive to feedback as the market matures.
“The certification changes represent a practical improvement that lowers unnecessary barriers while preserving professional standards,” the Hong Kong Securities and Futures Professionals Association said after the meeting.
Meanwhile, the SFC maintained that its regulatory approach is intended to strengthen market integrity and improve the competency of professionals operating within Hong Kong’s virtual asset industry under the authority granted by the Securities and Futures Ordinance.
As the Hong Kong SFC refines both licensing requirements and professional standards, market participants will be watching closely to see whether further guidance follows on self-custody arrangements, virtual asset payments, licensing classifications, and approval timelines. Those issues are likely to shape the next phase of Hong Kong’s efforts to position itself as one of Asia’s most regulated and competitive digital asset markets.
