Hong Kong Sets End-2026 Deadline for Sweeping New Crypto Licensing Rules

By Michael Adeleke

Hong Kong’s government said it will submit a bill to the city’s lawmakers before the end of 2026. The bill would create licensing regimes for four types of crypto business. This includes dealing, custody, advisory, and management.

Hong Kong reveals four licensing regimes

Christopher Hui, Secretary for Financial Services and the Treasury, shared the timeline on Monday with the Legislative Council Finance Committee. He said the government would submit the amendment bill “within this year.”

The bill still has to pass the Legislative Council before it takes effect. If it passes, the SFC, Hong Kong’s securities regulator, will handle licensing, supervision and enforcement.

The new rules would expand to other sectors beyond the current ones, which cover crypto trading platforms and stablecoin issuers. It would put more digital asset activity under the direct supervision of the SFC.

First is the dealing sector. The dealer regime would follow Hong Kong’s Type 1 securities dealing framework. Firms conducting covered crypto deals would require authorization, unless the final law exempts them.

Secondly, custody. This would cover firms that hold digital assets for clients outside licensed trading platforms. Regulators are working on how the private keys will be managed, how client assets are kept and what controls can reduce theft or misuse. 

There would also be guidance on advisory and management. Crypto advisers would follow standards based on Type 4 securities advice. Virtual asset managers would be modeled on the Type 9 asset management framework.

Officials said they will apply a “same business, same risks, same rules” system. This is to ensure traditional and digital finance face the same standards.

The Financial Services, the Treasury Bureau and the SFC are now finalizing the four regimes. They are being set up under Hong Kong’s Anti-Money Laundering and Counter-Terrorist Financing Ordinance. The final law will decide the start dates and transition period.

Building on existing rules

Hong Kong already requires SFC authorization for crypto exchanges that operate in the city. In August 2025, the SFC set tougher custody requirements for licensed platforms. They cover the use of cold wallets, withdrawal processes, and cybersecurity standards.

Stablecoins, on the other hand, are under a different regulator, the Hong Kong Monetary Authority (HKMA). The Stablecoins Ordinance took effect in August 2025. In April 2026, the HKMA granted its first two stablecoin issuer licenses to Anchorpoint Financial and the Hongkong and Shanghai Banking Corporation (HSBC). Hui had said in January that the HKMA had started processing stablecoin applications.

The HKMA also plans to launch EnsembleTX near the end of 2026. The system is to support central bank digital currency settlement and round-the-clock operations.

Timeline of the oversight tools

The SFC plans to launch a digital asset custody surveillance system in the second half of 2026. In 2027, its CrypTech initiative is expected to add big-data market monitoring and anti-money laundering tools.

The government’s 2026 Policy Address also highlighted other goals. Licensed trading platforms could support trading in regulated stablecoins. Regulation will also extend to tokenized investment products, such as tokenized gold.

Authorities have not said when firms can start applying for the new licenses. Application steps, timelines and possible exemptions will be announced after the bill passes and more guidance is issued.

Source:: Hong Kong Sets End-2026 Deadline for Sweeping New Crypto Licensing Rules