Hong Kong to License Crypto Dealers and Custodians After Review
Hong Kong regulators will move ahead with legislation to establish licensing regimes for virtual asset dealers and custodians following the conclusion of public consultations, according to a Wednesday statement from the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC). Once in force, the framework will require firms that provide crypto dealing or custody services in Hong Kong to obtain licenses.
The initiative extends the city’s broader crypto oversight program. Earlier in 2025, Hong Kong enacted its Stablecoin Ordinance, creating a licensing regime for stablecoin issuers. Crypto trading platforms are already required to be licensed. The current mandatory system builds on an opt-in framework introduced in 2020, with 11 companies approved by the SFC to date.
Hong Kong’s wider digital asset initiatives
Authorities have signaled an ambition to develop Hong Kong as a hub for digital assets, leveraging its role as a global financial center with a business-friendly tax environment and its position as a bridge between mainland China and international markets.
In addition to licensing rules, Hong Kong has conducted tokenization pilots. In Thursday’s announcement, regulators said the forthcoming licensing regimes for dealers and custodians form part of a comprehensive regulatory framework for digital assets alongside stablecoins and tokenization. Julia Leung, CEO of the SFC, said the continued development of the regulatory architecture would help the city maintain its role in global digital asset market developments by “fostering a trusted, competitive and sustainable ecosystem.”
Consultation on advisory and management licensing
The SFC also released a consultation paper on the same day seeking public input on proposals to introduce licensing regimes for crypto advisory service providers and management service providers. The proposals align the new regimes with Hong Kong’s existing Anti‑Money‑Laundering framework and Counter‑Terrorist Financing Ordinance and set out how advisory and management activities involving digital assets would be brought within scope. The paper invites comments on areas including licensing scope, regulatory powers, sanctions, and appeal arrangements, which will inform the final proposals.
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