Hong Kong’s Financial Services and the Treasury Bureau and the Securities and Futures Commission (SFC) have concluded consultations on new licensing regimes for virtual asset dealing and custody firms, marking another major step in the city’s expanding crypto rulebook.
Under the proposed framework, companies offering crypto trading or custody services in Hong Kong will be required to obtain licenses once the regulations take effect. The move significantly broadens regulatory oversight, building on momentum from the city’s Stablecoin Ordinance introduced earlier in 2025.
Hong Kong already enforces licensing requirements for crypto trading platforms, a system that evolved from an opt-in framework launched in 2020. So far, the SFC has approved 11 platforms, while rejecting more applicants than it has licensed, signaling a firm stance on compliance and risk controls.
SFC CEO Julia Leung said the new framework is designed to help Hong Kong maintain its edge in global digital asset markets by fostering a trusted, competitive, and sustainable ecosystem. The city has made clear its long-term ambition to position itself as a crypto hub, complementing its established role as a financial bridge between mainland China and global capital markets.
The upcoming licensing regimes are part of a broader push toward comprehensive digital asset regulation, covering not only crypto dealers and custodians but also stablecoins and tokenization initiatives. Regulators have already tested tokenization projects, signaling practical progress beyond policy discussions.
The SFC has also released a consultation paper seeking public feedback on licensing requirements for crypto advisory service providers and digital asset management firms. These proposals are closely tied to Hong Kong’s existing Anti Money Laundering and Counter Terrorist Financing Ordinance, reinforcing regulatory consistency.
The paper outlines how advisory and management activities involving digital assets would fall under formal supervision. It invites feedback on licensing scope, enforcement powers, sanctions, and appeal mechanisms, which will shape the final regulatory framework.
With its business-friendly tax structure and long-standing reputation as a global finance hub, Hong Kong is positioning itself to scale digital asset infrastructure responsibly. The expanding licensing regime aims to deliver regulatory clarity without sacrificing growth, a balance many global markets are still struggling to achieve.
