Hong Kong regulators back industry demands on CVAP exam — but big operational questions remain
After fresh talks with industry representatives, Hong Kong’s Securities and Futures Commission (SFC) has agreed to make immediate changes to the Certified Virtual Asset Platform (CVAP) qualification — a move industry groups say will lower barriers for professionals entering the city’s crypto ecosystem.
What changed
- The SFC has committed to separate the CVAP examination from its mandatory training course, so candidates will be able to sit the exam without first completing compulsory classes.
- The regulator also agreed to issue official revision materials and to reduce exam fees to align with those for existing licensing papers (Paper 2 and Paper 3).
- These steps follow a meeting between the Hong Kong Securities and Futures Professionals Association and senior officials, including Deputy Secretary for Financial Services and the Treasury Joseph Chan Ho-lim and SFC Intermediaries Division Executive Director Ye Chi-heng.
Why it matters
The CVAP sits at the center of Hong Kong’s professional standards for the digital-asset sector. Administered by the Hong Kong Securities and Investment Institute (HKSI) under SFC standards, the Certification Programme for Virtual Asset Professionals certifies knowledge in blockchain fundamentals, digital-asset products and AML compliance. Separating the exam from mandatory coursework, lowering fees and providing official study materials should make it easier and cheaper for existing license-holders and newcomers to meet those standards.
Outstanding industry concerns
The association used the meeting to press the regulator on several broader and operational issues that continue to create uncertainty for firms:
- The removal of a previous 10% minimum exemption for virtual asset management, and the immediate enforcement of new rules with no transition period.
- Many new provisions are still principle-based and lack practical operational guidance, complicating compliance and business planning.
- Questions about whether the CVAP exam framework received formal approval from the SFC board — the SFC did not directly answer that query but said the exam is run under the powers of the Securities and Futures Ordinance and encouraged license-holders to take it promptly.
Areas flagged for further negotiation
The association will continue talks with the Financial Services and the Treasury Bureau and the SFC on unresolved topics, including:
- Guidance for private funds seeking to self-custody assets.
- Clearer definitions separating technology service providers from activities that require licensing (the association says firms that don’t handle customer assets or collect commissions should not automatically be treated as licensed entities).
- The regulatory perimeter for virtual-asset payments.
- Operational relief requests for licensed trading platforms — while preserving security — such as broader hardware encryption options, a review of hot/cold wallet ratio rules, rethinking insurance coverage expectations and improving procedures for on-chain transfers.
Requests on process and product access
- The association highlighted staffing constraints at the SFC as a factor behind unclear licence approval timelines and asked the regulator to publish clearer processing schedules and milestone guidance so applicants can plan capital and hiring.
- It also urged faster approval for virtual-asset derivatives. Today, Hong Kong retail investors can access only five regulated spot cryptocurrencies (Bitcoin, Ether, Avalanche, Chainlink and Solana) and have no access to regulated hedging products, the group noted.
Regulatory context
These discussions take place as Hong Kong continues to expand its virtual-asset rulebook. In May, the Financial Services and the Treasury Bureau and the SFC confirmed new licensing regimes for virtual-asset advisory and management service providers, extending oversight beyond trading platforms, custody services and stablecoin issuers. The government also said legislation covering trading, custody, advisory and management services will roll out alongside a regulated stablecoin framework, with the first licensed stablecoins expected to appear between mid‑2026 and late‑2026.
Bottom line
The SFC’s commitments on the CVAP exam are a concrete regulatory win for the industry — lowering immediate barriers for credentialing — but many practical compliance, governance and product-access issues remain on the table. Expect continued engagement between industry groups and regulators in the coming months as Hong Kong refines both the licensing process and the operational rules that will shape its crypto marketplace.
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