Hong Kong Advances Crypto Licensing Plans for Four Key Services
Hong Kong is moving forward with plans to introduce legislation by the end of 2026 that will establish licensing regimes for four key crypto services: virtual asset dealing, custody, advisory, and management. Christopher Hui, the Secretary for Financial Services and the Treasury, announced during an October 5 Legislative Council meeting that an amendment bill covering these areas would be introduced this year. The proposal builds on consultations completed by the Financial Services and the Treasury Bureau and the Securities and Futures Commission (SFC).
The new licensing framework aims to extend Hong Kong’s existing regulatory system beyond virtual asset trading platforms and stablecoin issuers. The proposed regime for virtual asset dealing is modeled after the framework used for Type 1 securities dealing, with the SFC overseeing licensed firms. Custody rules will focus on safeguarding client private keys and mitigating risks associated with holding virtual assets in Hong Kong. Advisory and management services will operate under separate licensing regimes, following the principles of Type 4 securities regulation and Type 9 asset-management requirements, respectively.
Regulators have already completed consultations for dealing and custody licenses, receiving over 190 responses before finalizing their conclusions in December 2025. Consultations for advisory and management services closed in January 2026, with 51 responses gathered. The SFC encourages existing and prospective service providers to engage in early discussions to understand the proposed requirements and prepare for licensing applications. Hong Kong’s existing regulatory framework already covers virtual asset trading platforms and stablecoin issuers, with the Stablecoins Ordinance taking effect in August 2025.
Beyond the licensing regimes, Hong Kong’s 2026 Policy Address includes plans for enhanced surveillance tools, such as the SFC’s CrypTech program, which will introduce big-data market surveillance and anti-money laundering monitoring components in 2027. The Hong Kong Monetary Authority (HKMA) is also developing central bank digital currency settlement and 24/7 operations through EnsembleTX by the end of 2026. The amendment bill, once introduced, will undergo Hong Kong’s Legislative Council process before becoming law, with exact implementation dates and application procedures to be determined later.