Hong Kong advances crypto regulation by approving licensing plans for digital asset sellers, custodians, and advisors to strengthen oversight.
Hong Kong has taken one other main step towards tighter crypto oversight. Plans to license crypto sellers and custodians confirmed by regulators. The transfer comes after the tip of public consultations. Authorities need to improve investor safety and market stability throughout digital property.
Hong Kong Finalizes Licensing Push for Crypto Sellers and Custodians
In a joint announcement on Wednesday, regulators stated there had been progress. The Monetary Providers and the Treasury Bureau and the Securities and Futures Fee have been within the lead. They ended consultations on licensing regimes. Companies that present crypto dealing or custody companies will want licenses as soon as guidelines apply.
🇭🇰 The FSTB and SFC have formally concluded consultations on new licensing regimes for crypto sellers and custodians.
Town is shifting from “proposal” to “legislation,” with new laws set to hit the Legislative Council in 2026. #HongKongCrypto pic.twitter.com/EOOU1R9jaG
— Conor Kenny (@conorfkenny) December 24, 2025
Officers stated there was broad help for this system based mostly on market suggestions. Subsequently, authorities will go forward with legislative proposals. The brand new regimes full an essential piece of the puzzle in relation to Hong Kong’s digital property. They’re consistent with the SFC’s ASPIRe regulatory roadmap. The target is a protected and aggressive digital property ecosystem.
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For crypto sellers, the regime will intently resemble that for securities. It would align with Sort 1 regulated actions. Furthermore, comparable exemptions could apply. Subsequently, regulators purpose to make sure consistency throughout monetary markets. Regulators attempt to apply equal requirements for equal dangers.
Crypto custodians will probably be topic to sure safeguards. The regime will concentrate on the non-public key administration dangers. Defending consumer property is a precedence. Custodians have to have safe storage for digital property. These measures are taken to attenuate operational and safety failures.
Regulators invited early participation by business contributors. Companies can conduct pre-application discussions upfront with the SFC. This allows improved preparation and planning for compliance. Early involvement might also expedite future licensing processes.
In response to suggestions, regulators began one other session. This enlargement consists of digital asset advisory and administration companies. The strategy relies on the “similar enterprise, similar dangers, similar guidelines” precept. Advisors and managers will probably be held to comparable requirements as securities companies.
Capital Guidelines, Stablecoins, and Market Influence in Focus
The brand new regimes have monetary thresholds. The custodians of crypto exchanges should keep a minimal of HKD 10 million in paid-up capital. They need to even have liquid capital as much as HKD 3 million. Relying on enterprise fashions, there are completely different necessities.
Regulatory readability could entice professional companies, officers stated. Licensed brokers will ultimately have entry to world liquidity swimming pools. Investor confidence could also be enhanced by improved requirements. Hong Kong desires to turn out to be a trusted crypto middle.
SFC Chief Government Julia Leung raised the difficulty of long-term advantages. Accountable innovation is supported by the framework, she stated. In response to her, it builds competitiveness and resilience. Authorities imagine digital property have an financial profit to the broader economic system.
Monetary Secretary Christopher Hui echoed this view. He stated the proposal covers a steadiness of progress and threat administration. Investor safety is vital to coverage design. The framework helps the worldwide ambitions in Hong Kong close to digital finance.
Individually, stablecoin is already underneath regulation. A licensing regime for fiat-referenced stablecoins started on August 1, 2025. The Hong Kong Financial Authority is answerable for monitoring this framework. The primary licenses are projected for early 2026.
Taken collectively, these measures point out regulatory maturity. In Hong Kong, oversight is tightening with a concentrate on supporting innovation. The licensing push is in line with traits in regulation worldwide. Market contributors are actually ready for legislative timelines and specifics of their implementation.