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- Hong Kong plans to introduce legislation before the end of 2026 creating four new licensing regimes for virtual asset services.
- The proposal extends regulation to virtual asset dealing, custody, advisory, and management services under the Securities and Futures Commission.
- Implementation dates and transition arrangements depend on the final legislation.
Hong Kong plans to introduce legislation before the end of 2026 creating four new licensing regimes for virtual asset dealing, custody, advisory, and management services.
The proposal would extend regulation beyond the city’s existing rules for crypto trading platforms and stablecoin issuers, bringing more digital asset activity under direct supervision by the Securities and Futures Commission.
Crypto Dealers Would Face Type 1-Style Licensing Rules
The proposed regime for virtual asset dealers would broadly follow Hong Kong’s Type 1 securities dealing framework.
Firms carrying out covered crypto transactions would need authorization unless they qualify for an exemption under the final legislation.
Hong Kong completed consultation on the dealer regime in December 2025 after receiving 101 submissions, with most respondents supporting licensing beyond centralized trading platforms.
Standalone Custodians Would Come Under New SFC Oversight
A separate licensing regime would cover companies safeguarding digital assets for clients outside licensed trading platforms. Regulators are focusing the proposed rules on private-key management, segregation of client assets and controls designed to reduce theft or misuse.
The government received 93 responses to its custody consultation. Existing licensed trading platforms already face custody requirements, while the new regime would extend oversight to standalone custodians.
Advisory and Management Regimes Would Mirror Types 4 and 9
Hong Kong also plans separate licensing frameworks for virtual asset advice and portfolio management.
Crypto advisory businesses would broadly follow requirements applied to Type 4 securities advisers, while virtual asset managers would be modeled on the Type 9 asset management framework. Regulators completed consultation on those proposals in May after receiving 51 responses.
Amendment Bill Targeted for Legislative Council Before End-2026
The Financial Services and the Treasury Bureau and SFC are finalizing the four regimes under Hong Kong’s Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
The government plans to submit an amendment bill to the Legislative Council before the end of 2026. Implementation dates and transition arrangements will depend on the final legislation.
If enacted, the framework would give Hong Kong dedicated regulatory regimes covering trading platforms, stablecoin issuance, crypto dealing, custody, advice, and asset management.
