Hong Kong Crypto Regulations: Licensing Framework in 2026

Hong Kong is drawing investor attention by preparing new licensing rules covering virtual asset trading and custody services. These regulations are planned to be submitted to the legislature in 2026, supporting Hong Kong's goal of becoming a leading cryptocurrency hub in Asia.

The financial regulators of Hong Kong announced that they are working on a comprehensive licensing framework in collaboration with the Financial Services and the Treasury Bureau and the Securities and Futures Commission. More than 190 opinions were collected during a two-month public consultation period, and regulations are being developed based on this feedback. The evolving drafts aim to align virtual asset trading and custody services with existing financial regulations.

The new licensing regime will be conducted under the Anti-Money Laundering and Counter-Terrorist Financing Regulation and will be regulated in parallel with the standards applied to securities intermediaries. This way, virtual asset trading and custody activities will be governed by robust rules applied to similar risks in traditional financial markets. Hong Kong's strategy also anticipates a competitive stance with Singapore by distancing itself from the pressures on cryptocurrencies coming from China.

The new custody regime aims to enhance investor security by focusing on private key security and the protection of client assets. Regulations for intermediaries will be aligned with the licensing expectations of securities intermediaries, increasing credibility in the sector. These steps are considered part of the Securities and Futures Commission's ASPIRe roadmap aimed at expanding access to crypto markets. Additionally, a new inspection process covering virtual asset advisers and portfolio managers has also been initiated.

The principle of "Same business, same risk, same rules" adopted by Hong Kong stands out as an important strategy aimed at setting the standards for cryptocurrency regulations in Asia. Feedback will be accepted until January 23 of each year, marking the beginning of a new era for investors in the future of the crypto market.