Regulatory expansion strengthens oversight of crypto services and custody
Hong Kong is moving forward with new licensing regimes for virtual asset dealers and custodians, marking another step in the city’s effort to build a comprehensive regulatory framework for digital assets. The decision follows the conclusion of public consultations by financial regulators and reflects Hong Kong’s broader strategy to tighten oversight while supporting market development.
The Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) confirmed that firms offering crypto dealing or custody services in Hong Kong will be required to obtain licenses once the new framework comes into force. This expands existing rules that already mandate licensing for crypto trading platforms, where only a limited number of applicants have been approved to date.
The new regimes build on earlier initiatives, including the Stablecoin Ordinance introduced in 2025, which created a formal licensing structure for stablecoin issuers. Regulators emphasized that the latest move complements ongoing efforts around tokenization guidance and digital asset governance, aimed at ensuring consistency across the sector.
Alongside the announcement, the SFC launched a consultation on licensing requirements for virtual asset advisory and management service providers. These proposals would align crypto-related services with Hong Kong’s anti-money laundering and counter-terrorist financing framework, covering licensing scope, enforcement powers, and sanctions.
Officials said the expanded framework is designed to foster a trusted, competitive, and sustainable digital asset ecosystem, reinforcing Hong Kong’s position as a global financial and crypto hub.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.