Hong Kong to Introduce Crypto Licensing Bill Before End of 2026
by Maisie Morrison · BlockonomiTLDR
Table of Contents
- Hong Kong plans to introduce a bill before the end of 2026 creating four new crypto licensing regimes.
- The licenses would cover virtual asset dealing, custody, advisory and management services.
- Advisory and management rules will broadly mirror existing securities licensing standards.
- Hong Kong already licenses crypto trading platforms and stablecoin issuers under separate frameworks.
- The SFC plans new custody surveillance in 2026, with more monitoring tools arriving in 2027.
Hong Kong plans to introduce legislation before the end of 2026 that would create new licensing regimes for four types of crypto services. The plan covers virtual asset dealing, custody, advisory and management.
Christopher Hui, the Secretary for Financial Services and the Treasury, shared the timeline on Oct. 5. He spoke during a Legislative Council Finance Committee policy briefing.
The new regimes have not taken effect yet. The amendment bill must first be introduced to the Legislative Council and pass through the lawmaking process.
What the Four Crypto Licenses Would Cover
For virtual asset dealing, the proposed rules would follow parts of the framework used for Type 1 securities dealing. The Securities and Futures Commission (SFC) would license and supervise firms in this area.
Custody rules focus on firms that safeguard private keys for clients. The regime would include controls meant to protect customer property held in Hong Kong.
Advisory rules would broadly follow Type 4 securities regulation. Virtual asset management would be modeled on Type 9 asset management requirements.
Regulators have used the principle of “same business, same risks, same rules” when shaping the proposals.
Consultation on dealing and custody began in June 2025. It drew more than 190 responses before conclusions were published on Dec. 24.
A separate consultation on advisory and management services closed in January 2026 with 51 responses. Regulators confirmed the results in May.
Existing Rules and New Surveillance Tools
The new bill would sit alongside licensing systems already in place. Crypto exchanges serving the local market already need SFC authorization.
The SFC also introduced stricter custody standards for licensed platforms in August 2025. These cover cold wallets, withdrawals and cybersecurity controls.
Stablecoin issuance is overseen by the Hong Kong Monetary Authority (HKMA). The Stablecoins Ordinance took effect on Aug. 1, 2025, and the first two issuer licenses were granted in April 2026.
The SFC plans to launch a digital asset custody surveillance system in the second half of 2026. Its CrypTech program is expected to add big-data market surveillance and anti-money laundering monitoring in 2027.
The HKMA plans to introduce central bank digital currency settlement and 24/7 operations through EnsembleTX around the end of 2026.
Under the 2026 Policy Address, licensed platforms are expected to support trading in regulated stablecoins. Rules for tokenized investment products will also expand to include assets such as tokenized gold.
Authorities have not announced a start date for the four new licenses. Exact dates, exemptions and application steps will depend on the final law and later guidance.
The SFC continues to encourage firms that provide or plan to provide these services to contact regulators early. Officials said early talks could help companies prepare licensing applications before the new regimes take effect.