Hong Kong regulators are moving forward with new licensing regimes for virtual asset dealers and custodians as part of a wider effort to strengthen crypto oversight.
The Financial Services and the Treasury Bureau and the Securities and Futures Commission confirmed they have concluded consultations on the proposed frameworks.
Under the plans, firms offering crypto dealing or custody services in Hong Kong will be required to obtain regulatory licences once the legislation takes effect.
Authorities said the move reflects growing activity in the digital asset sector and the need for clearer supervisory standards.
The proposed regimes expand Hong Kong’s existing approach to crypto regulation, which already mandates licences for virtual asset trading platforms.
The current trading platform regime evolved from an opt-in framework launched in 2020.
To date, 11 crypto trading platforms have received approval from the Securities and Futures Commission.
Earlier in 2025, Hong Kong also enacted its Stablecoin Ordinance, introducing a formal licensing system for stablecoin issuers.
Regulators said the new dealer and custodian regimes would complement existing stablecoin rules and tokenisation guidance.
Hong Kong has positioned these measures as part of a comprehensive digital asset regulatory framework.
The city has repeatedly signalled its ambition to develop into a global crypto hub.
Hong Kong already serves as a major financial centre with business-friendly tax policies and deep international capital market links.
Officials view crypto regulation as an extension of the city’s traditional strengths in financial services.
Beyond licensing, Hong Kong has been actively testing tokenisation initiatives involving traditional financial instruments.
Regulators said the latest proposals aim to balance innovation with investor protection.
Julia Leung said the expansion of the regulatory framework would support Hong Kong’s long-term competitiveness.
The framework will help foster a trusted, competitive and sustainable ecosystem.
Julia Leung said.
Alongside the licensing announcement, the Securities and Futures Commission released a separate consultation paper.
The new consultation seeks public feedback on proposed licensing regimes for crypto advisory and management service providers.
Regulators said these activities are increasingly significant as institutional involvement in digital assets grows.
The proposals would bring advisory and management services within Hong Kong’s existing Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
The consultation outlines how supervisory powers would apply to firms operating in these segments.
It also covers potential sanctions, appeal mechanisms and enforcement tools.
Authorities said industry feedback would play a key role in finalising the scope of the new rules.
The consultation forms part of Hong Kong’s broader effort to align crypto oversight with traditional financial regulation.
Regulators believe a clear and comprehensive framework will help attract responsible crypto businesses.
The measures are also intended to reinforce Hong Kong’s role as a gateway between mainland China and global markets.
Officials said the city remains committed to developing regulated digital finance rather than restricting innovation.
The announcements underscore Hong Kong’s determination to remain competitive as other jurisdictions advance crypto legislation.