Hong Kong Web3 Wallet and custody service compliance acceleration! The platform has been licensed and landed!

As the regulatory framework for Web3 continues to evolve, Hong Kong has extended its oversight to encompass wallet and custodial services, propelling the industry's compliance efforts into a new phase. Since 2023, the Hong Kong Securities and Futures Commission has incorporated Web3 wallets into its regulatory purview, explicitly requiring custodial service providers to adhere to core provisions such as anti-money laundering (AML) and customer due diligence (CDD). Entering 2025, the industry's compliance drive has accelerated, with multiple wallet platforms actively submitting licence applications. Several platforms have already secured licences, becoming the first compliant operators. Conventional banks such as Standard Chartered and HSBC have also expanded their footprints, facilitating deeper integration between traditional finance and digital assets.

Regulatory leadership serves as a crucial prerequisite for the standardised development of Web3 wallets and custodial services. As early as 2023, the Hong Kong Securities and Futures Commission proactively brought Web3 wallets within its regulatory purview, focusing primarily on two key areas: anti-money laundering and customer due diligence. This regulatory approach has clarified the compliance boundaries for industry development, effectively mitigating potential risks such as fund security and illicit transactions that previously arose from regulatory gaps in wallet services and asset custody. It has laid a solid foundation for subsequent standardised industry development and signalled Hong Kong's commitment to promoting the safe and orderly growth of the Web3 sector.

The year 2025 marks a pivotal milestone for the compliant implementation of Web3 wallets in Hong Kong. As the regulatory framework progressively crystallises, multiple platforms specialising in Web3 wallets have proactively responded to regulatory requirements, actively preparing and submitting licence applications. Currently, several platforms have successfully passed reviews and obtained relevant licences, becoming Hong Kong's first batch of compliantly operating Web3 wallet platforms. Licensed status not only signifies that these platforms' operational models, risk controls, and customer service meet regulatory standards, but also grants them a compliance advantage in market competition. This is expected to attract more institutions and individual users prioritising asset security, further stimulating market demand for compliant wallet services.

Notably, the active participation of traditional financial institutions is injecting fresh vitality into the development of Web3 wallet and custody services. Leading Hong Kong banks such as Standard Chartered and HSBC are accelerating their expansion into Web3 wallet operations. Leveraging their extensive customer bases, mature risk control systems, and broad financial resources, they are driving the deep integration of traditional financial services with Web3 offerings like digital asset custody and wallet management. This trend not only enriches the market supply of Web3 wallet and custody services but also helps lower the barrier to entry for ordinary users in the digital asset sphere. It enhances market confidence in the Web3 industry and fosters a positive interaction between the Web3 ecosystem and the traditional financial system.