Hong Kong Advances With Licensing Regulations for Crypto
Hong Kong is taking strong measures to oversee the cryptocurrency industry carefully. Following the completion of public consultations on the proposed framework, regulators are proceeding with mandatory licensing regimes for crypto dealers and custodians.
On Wednesday, the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) Hong Kong announced that any firms providing crypto dealing or custody services must obtain a license once the new rule comes into effect.
Expansion Beyond Trading Platforms
Hong Kong already has licensing requirements for crypto trading platforms but now intends to apply similar regulations to NFTs. In 2020, the city created a licensing scheme requiring opt-in approval, adding 11 companies to the list while rejecting others.
Also Read : Quantum Computing vs Bitcoin: Would a Hack of Satoshi’s BTC Crash the Market?
Hong Kong’s Broader Crypto Ecosystem
Earlier in 2025, Hong Kong introduced the Stablecoin Ordinance, establishing a license regime for stablecoin issuers. The upcoming licensing of dealers and custodians enhances this framework, reflecting the city’s ambition to create a comprehensive regulated digital assets ecosystem.
Hong Kong has long aimed to become a global crypto hub due to its financial infrastructure, business-friendly tax regime, and strategic role as a bridge between Chinese and overseas capital. The city has also trialed tokenization to support innovation in digital assets.
According to Julia Leung, the chief executive of the SFC, Hong Kong’s crypto regulatory framework expansion will foster an ecosystem that is trusted, competitive, and sustainable, helping the city maintain a leading role in the global digital asset market.
Proposals for Licensing Advisory and Management Services
On the same day, the SFC published a consultation paper on licensing regimes for crypto advisory and management service providers, opening it for public feedback.
The proposed framework aligns with Hong Kong’s existing Anti-Money Laundering (AML) framework and Counter-Terrorist Financing Ordinance (CTF), regulating advisory and management activities related to digital assets. The consultation seeks input on:
- Criteria and scope of licensing
- Regulatory powers and oversight
- Enforcement actions and penalties
- Appeals processes
The final regulatory framework will incorporate public and stakeholder feedback to ensure it is effective and robust.
Implications for Hong Kong’s Crypto Market
With these measures, Hong Kong aims to cement its status as a regulated and forward-looking hub for digital assets. By combining dealer and custodian licenses with regulations for stablecoins and tokenization, the city seeks to create a safe, transparent, and competitive environment that attracts legitimate players while protecting investors and strengthening market integrity.
According to the new guidelines, regulated compliance will form the future of crypto operations in Hong Kong, enhancing trust in the city’s thriving digital assets ecosystem.
