Hong Kong Expands Crypto Regulation with Four New Licensing Regimes

Hong Kong is preparing to expand its regulatory framework for cryptocurrencies with new licensing regimes for four key services: virtual asset dealing, custody, advisory, and management. The government plans to submit an amendment bill to lawmakers before the end of 2026, following consultations completed by the Financial Services and the Treasury Bureau and the Securities and Futures Commission (SFC).

The proposed licensing systems will extend beyond the existing regulations for crypto trading platforms and stablecoin issuers. Each service area will have its own regime, modeled after existing securities licensing standards. For example, virtual asset dealing will follow the framework used for Type 1 securities dealing, while custody rules will focus on safeguarding private keys and protecting client property.

Advisory and management services will also be regulated under separate regimes, mirroring Type 4 securities regulation and Type 9 asset-management requirements, respectively. The SFC emphasized the principle of “same business, same risks, same rules” in developing these proposals. The government expects to introduce the amendment bill this year, though the exact implementation dates will depend on the legislative process.

Additionally, Hong Kong plans to enhance its surveillance capabilities with new digital asset monitoring tools, set to arrive in 2027. The SFC’s CrypTech program will introduce big-data market surveillance and anti-money laundering monitoring components. These developments are part of Hong Kong’s broader strategy to strengthen its position as a hub for virtual asset services.