Hong Kong Unveils New Licensing Regimes for Virtual Asset Services

Hong Kong has announced plans to introduce new licensing regimes for four key services related to cryptocurrencies: virtual asset dealing, custody, advisory, and management. The licensing framework is expected to be submitted to the Legislative Council before the end of 2026, following a year-long consultation process. The new licenses will extend Hong Kong's regulatory framework beyond virtual asset trading platforms and stablecoin issuers.

The proposed licensing regimes for virtual asset dealing and custody will be modeled on existing securities licensing standards. For advisory and management services, the regulations will broadly mirror Type 4 and Type 9 securities regulation, respectively. The Securities and Futures Commission (SFC) has confirmed that it will finalize legislative proposals under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.

The SFC has also announced plans to introduce a digital asset custody surveillance system in the second half of 2026, which will be followed by the addition of big-data market surveillance and anti-money laundering monitoring components in 2027. The Hong Kong Monetary Authority (HKMA) plans to introduce central bank digital currency settlement and 24/7 operations through EnsembleTX around the end of 2026.