The Hong Kong Securities and Futures Commission plans to implement new guidelines for licensed firms on engaging financial Key Opinion Leaders and using digital platforms, aiming to enhance investor protection.

Executive Summary

The Hong Kong Securities and Futures Commission is set to introduce stringent guidelines for licensed firms engaging financial Key Opinion Leaders (KOLs) and utilizing digital platforms for promotions, a move expected to bolster investor protection and impact marketing strategies.

The Event in Detail

On February 19, 2025, the Hong Kong Securities and Futures Commission (SFC) released its "Virtual Asset Roadmap" (ASPI-Re), outlining 12 key measures for the development of Hong Kong's virtual asset market. A core component of this roadmap, specifically under Pillar Re (Relationships), focuses on facilitating investor communication and education, including building cooperation mechanisms with financial influencers. Concurrently, the SFC is developing new guidelines for licensed corporations that engage financial KOLs and leverage digital platforms for promotional activities. These forthcoming standards will mandate rigorous due diligence on KOLs' backgrounds, credibility, and experience. Furthermore, firms will be required to continuously monitor KOL activities to ensure promotional content remains accurate and non-misleading, alongside implementing measures to prevent market manipulation by influencers. This initiative aligns with global regulatory efforts, as the SFC is participating in the International Organization of Securities Commissions (IOSCO) "Global Week of Action Against Unlawful Finfluencers" scheduled for the week of June 2, 2025.

Market Implications

The introduction of these regulations is poised to significantly impact how licensed corporations in Hong Kong approach marketing within the digital asset space. In the short term, firms are likely to adopt a more cautious stance on KOL engagement, coupled with stricter content vetting processes. This could lead to a reduction in promotional activities, potentially affecting market liquidity or innovation in Hong Kong's crypto sector due to increased compliance costs. Long-term, these measures are anticipated to enhance investor protection and foster greater market integrity, thereby potentially legitimizing the digital asset ecosystem in Hong Kong. This local regulatory shift mirrors broader global trends. Crypto advertising regulations tightened worldwide in 2025, with instances like the EU's MiCA regulation governing crypto-asset promotions and the U.S. GENIUS Act mandating 1:1 asset-backing for stablecoin ads. Global crypto scam losses, totaling $9.9 billion in 2024 and projected higher for 2025, underscore the urgency driving such regulatory interventions. While institutional scrutiny and tighter ad restrictions have slowed "hype-led growth," the FDIC's March 2025 guidance allowing banks to pursue crypto ad strategies with risk controls, and PwC's observation of a more "crypto-friendly" U.S. regulatory tone in 2025, suggest a maturing landscape.

Expert Commentary

Industry analysis highlights that influencer marketing in Web3 requires a nuanced approach, moving beyond simple follower counts. The focus is shifting to the "on-chain quality" of an audience, a strategy termed wallet-weighted KOL vetting. This involves using data to assess whether an influencer's followers actively hold and transact in cryptocurrencies, and if their token or NFT holdings align with a project's goals. Tools like Web3Sense's Influence Scorecard provide metrics on the total on-chain value of followers, percentage holding NFTs or DeFi tokens, and authenticity scores. Campaigns leveraging KOLs with a high "wallet-fit" have demonstrated measurably higher click-through and conversion rates, leading to outcomes like increased account sign-ups and lower customer acquisition costs for crypto exchanges. Compliance remains paramount; FTC endorsement rules in the U.S. mandate clear disclosures such as "paid partnership" labels, factual claims, and avoidance of profit promises. Global influencer spend is estimated to exceed $30 billion in 2025, with 60.2% of influencer workflows incorporating AI to enhance compliance and targeting. Furthermore, 73% of brands prioritize niche and micro-influencers for their stronger return on investment.

Broader Context

Hong Kong's regulatory advancements are part of its broader strategy to become a leading hub for virtual assets. At the Web3 Festival Hong Kong 2025, the SFC announced it would permit licensed crypto exchanges to offer staking services, a significant development for regulated DeFi. Financial Secretary Paul Chan also confirmed that comprehensive stablecoin regulations are slated for later in 2025. These regulatory clarity initiatives aim to position Hong Kong as a blueprint for balancing innovation with investor protection in the digital asset space. While the global crypto market experienced a 9% drop in Q1 2025, holding at approximately $2.62 trillion, the Global Cryptocurrency Exchange Platform Market is projected to grow from $50.95 billion in 2024 to $63.38 billion in 2025, with an anticipated CAGR of 24.1% to reach $150.1 billion by 2029. This significant market expansion underscores the critical need for robust and transparent regulatory frameworks, such as those being developed by the SFC, to foster trust and sustainable growth within the rapidly evolving crypto economy.