Office of Licensing Authority of Home Affairs Department stepped up enforcement actions against unlicensed hotels/guesthouses and illegal club-house operations before festive season
Before the festive season holidays, the Office of the Licensing Authority (OLA) of the Home Affairs Department conducted an operation codenamed "Solar Flare" against premises suspected of operating unlicensed hotels or guesthouses and licensed club-houses suspected of being in breach of licensing conditions in Yau Tsim Mong District, Wan Chai District and Central and Western District for five consecutive days from December 15 to 19, to ensure the safety of customers as well as the general public.
A spokesman for the OLA said, "During the operation, the OLA carried out surprise inspections of 48 premises. Six premises were suspected of operating unlicensed hotels or guesthouses, and two licensed club-houses were suspected of breaching certain licensing conditions. The OLA will initiate prosecution on cases with sufficient evidence after completion of the investigation."
The spokesman stressed, "Operating unlicensed hotels or guesthouses is a criminal offence leading to a criminal record upon conviction. According to the Hotel and Guesthouse Accommodation Ordinance, an offender is liable to three years' imprisonment and a maximum fine of $500,000. A fine of $20,000 for each day can also be imposed during which the offence continues. A six-month closure order may also be issued for a hotel/guesthouse involved in a repeated offence. Moreover, according to the Clubs (Safety of Premises) Ordinance, an offender who contravenes any condition of a certificate of compliance (e.g. failure to produce a fire certificate on demand and carrying out alteration and addition works without seeking prior approval) is liable to a maximum fine of $100,000 and two years' imprisonment. A fine of $10,000 for each day can also be imposed during which the offence continues."
To enhance deterrence against unlicensed hotels and guesthouses, the Hotel and Guesthouse Accommodation Ordinance was amended in 2020 to empower the Hotel and Guesthouse Accommodation Authority to apply to the court, upon the second conviction within 16 months of operating an unlicensed hotel or guesthouse or the new strict liability offence in respect of the same premises, to issue a closure order to close the premises for six months. As at December 15, the OLA has applied for four closure orders under the Hotel and Guesthouse Accommodation Ordinance from the court, of which two closure orders against two premises have been issued by the court.
Apart from conducting special operations during festive seasons, the OLA is also stepping up efforts to combat unlicensed guesthouses via online platforms. The OLA has strengthened its intelligence collection by forming a dedicated team to browse webpages, mobile applications, social media, discussion forums, etc., to search for information and intelligence on suspected unlicensed guesthouses. The OLA's law enforcement officers will initiate follow-up investigations when information on unlicensed guesthousesadvertised via online platforms is found. The OLA also conducts publicity work on major Internet search engines outside Hong Kong toenable tourists to access information provided by the OLA in the course of planning their trips to Hong Kong.
Tourists and members of the public can make use of the search functions on the OLA's website (www.hadla.gov.hk/) to check whether the hotel or guesthouse concerned is licensed or not. Any suspected unlicensed hotel or guesthouse should be reported to the OLA by the hotline (tel: 2881 7498), by email (hadlaenq@had.gov.hk), by fax (2504 5805), or through the mobile application "Hong Kong Licensed Hotels and Guesthouses".
Office of Licensing Authority of Home Affairs Department stepped up enforcement actions against unlicensed hotels/guesthouses and illegal club-house operations before festive season Source: HKSAR Government Press Releases
FSTB and SFC publish consultation conclusions on legislative proposals for regulating virtual asset dealing and custodian services
The Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) today (December 24) jointly published the consultation conclusions on the legislative proposals for establishing licensing regimes for virtual asset (VA) dealing and custodian service providers. The FSTB and the SFC also launched a further public consultation today for one month on establishing separate licensing regimes for VA advisory and management service providers.
During the two-month public consultation period completed this August, 101 and 93 submissions were received on the proposed licensing regimes for VA dealing service providers and VA custodian service providers respectively. The majority of respondents, including market participants, industry associations, business and professional organisations, expressed clear support for expanding the regulatory scope to cover VA dealing and custodian services, following the introduction of the licensing regime for the VA trading platform in June 2023. This is considered a critical step to promote the steady and sustainable development of the digital asset (Note) ecosystem in Hong Kong. The respondents also indicated support for the overall direction of the proposed regulatory requirements and implementation arrangements, while suggesting enhancements and seeking clarifications on certain aspects.
The proposed licensing regime for VA dealing service providers will largely align with that for Type 1 (dealing in securities) regulated activity under the Securities and Futures Ordinance (Cap. 571) as applicable to conventional securities dealing activities. As for VA custodian service providers, the proposed licensing regime will focus on managing risks relating to safekeeping private keys of client VAs in Hong Kong, which is the core risk area of VA custody, with a view to enhancing the security of client assets.
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, "The proposed establishment of licensing regimes for VA dealing and custodian service providers marks a significant step in enhancing our legal framework for digital assets. The proposed licensing regimes strike a prudent balance among fostering market development, managing risks and protecting investors. They will help realise our vision for building a trusted and sustainable digital asset ecosystem, with a view to establishing Hong Kong as a global hub for digital asset innovation."
The Chief Executive Officer of the SFC, Ms Julia Leung, said, "The significant progress in our VA regulatory framework ensures Hong Kong remains at the global forefront of digital asset market developments by fostering a trusted, competitive and sustainable ecosystem. With an unwavering commitment to responsible innovation, we are laying the foundation for a vibrant yet resilient ecosystem that may bring vast benefits to Hong Kong's financial markets and the broader economy in the long run."
Meanwhile, in response to the feedback received, the FSTB and the SFC also launched a further publicconsultation today on establishing separate licensing regimes for VA advisory and management service providers, instead of covering the relevant VA activities under the licensing regime for VA dealing service providers as originally proposed. This revised regulatory approach will model itself on the regulatory framework applicable to the conventional securities market, and will provide better clarity as regards the scope of activities regulated under different VA licensing regimes. The further consultation will last for one month, ending on January 23, 2026.
The FSTB and the SFC welcome views from the public on the proposed licensing regimes for VA advisory and management service providers. Submissions should be sent by post (24/F, Central Government Offices, 2 Tim Mei Avenue, Tamar, Hong Kong) or by email (vadealing-consult@fstb.gov.hk) to the FSTB.
Details of the consultation conclusions, as well as the further public consultation for licensing regimes for VA advisory and management service providers, are available on the webpages of the FSTB and the SFC:
*Consultation Conclusions on Legislative Proposal to Regulate Dealing in VA and Further Public Consultation on Legislative Proposal to Regulate VA Advisory Service Providers and VA Management Service Providers (www.fstb.gov.hk/fsb/en/publication/consult/doc/VAdealing_consultation_conclusion_e.pdf /apps.sfc.hk/edistributionWeb/gateway/EN/consultation/conclusion?refNo=25CP6)
*Consultation Conclusions on Legislative Proposal to Regulate VA Custodian Services (www.fstb.gov.hk/fsb/en/publication/consult/doc/Custodian_consultation_conclusion_e.pdf /apps.sfc.hk/edistributionWeb/gateway/EN/consultation/conclusion?refNo=25CP7)
With broad market support, and taking into account the feedback to be received in the further consultation, the FSTB and the SFC will finalise the legislative proposals for the licensing regimes, with a target of introducing the relevant bill into the Legislative Council in 2026.
Note: "Digital asset" is a general term with a broad scope, covering, among others, "virtual asset", which is a legally defined term under the existing Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615).
Source: AI-found images
