Crypto Firms Face New Licensing Requirements Under Hong Kong’s Latest Plan
What Did Regulators Decide later than the Consultation?
Hong Kong regulators will move ahead with legislation to require licensing for crypto dealers and custodians later than completing a public consultation, tightening oversight of the city’s digital asset sector. In a joint announcement, the Financial Services and the Treasury Bureau and the Securities and Futures Commission said firms providing crypto dealing or custody services in Hong Kong will need licenses once the new framework takes effect.
The decision extends an already layered regulatory structure. Hong Kong has required to hold licenses for several years, with the current mandatory system building on an opt-in regime introduced in 2020. To date, 11 platforms have received approval, while a larger number of applicants have been rejected, underscoring the city’s selective approach.
The upcoming dealer and custodian regimes are designed to close remaining gaps by bringing more service providers under direct supervision, rather than leaving them adjacent to licensed platforms.
Investor Takeaway
How Does This Fit Into Hong Kong’s Broader Crypto Framework?
The move adds to a broader push to formalize digital asset oversight. Earlier in 2025, Hong Kong brought its Stablecoin Ordinance into force, creating a . Together with the platform rules, the new dealer and custodian requirements form a more complete regulatory perimeter around crypto activity.
Regulators framed the changes as part of a wider effort that also includes tokenization initiatives. Authorities have tested , using them as a way to explore how blockchain-based finance could operate inside existing legal structures.
Hong Kong has repeatedly stated its ambition to function as a . Its role as a financial gateway between mainland China and international markets, combined with a business-friendly tax system, has made regulatory clarity a central tradeing point. The city’s approach favors formal authorization and close supervision over lighter-touch experimentation.
Julia Leung, chief executive of the , said further development of the framework would assist Hong Kong keep pace with global digital asset markets by “fostering a trusted, competitive and sustainable ecosystem.”
What New Activities Are Being Brought Under Oversight?
Alongside the conclusion of the dealer and custodian consultation, the SFC published a separate paper viewking feedback on licensing for crypto advisory service providers and management service providers. These proposals would draw advisory and management activities involving digital assets into Hong Kong’s existing Anti-Money Laundering and Counter-Terrorist Financing framework.
The consultation outlines how firms offering advice on digital assets or managing crypto portfolios could be supervised, including requirements around licensing scope, regulatory powers, sanctions, and appeal mechanisms. Regulators said feedback on these points will inform the final structure of the regimes.
By linking advisory and management services to the identical AML and counter-terrorism rules that apply across financial services, the SFC is attempting to ensure that crypto-related advice and asset management do not operate under looser standards than traditional finance.
Investor Takeaway
What Comes Next for Crypto Firms in Hong Kong?
Once the legislation is finalized, crypto dealers and custodians operating in or targeting Hong Kong clients will need to assess whether they can meet the licensing requirements. Firms that already hold platform licenses may find the transition smoother, while standalone custody providers and brokers could face higher entry barriers.
The parallel consultation on advisory and management services suggests further rulemaking ahead. Taken together, the initiatives point toward a model where nahead all professional crypto activity—trading, custody, issuance, advice, and management—sits inside a single regulatory framework.
