Hong Kong has set out plans to submit legislation before the end of 2026 that would create licensing regimes for virtual asset dealing, custody, advisory and management services.
Summary
- Hong Kong plans four new licensing regimes covering virtual asset dealing, custody, advisory and management.
- The government expects to introduce the amendment bill to lawmakers before the end of 2026.
- Advisory and management rules will broadly mirror existing securities licensing standards for comparable regulated activities.
- Hong Kong already licenses crypto trading platforms and stablecoin issuers under separate regulatory frameworks today.
- The SFC plans tighter custody surveillance while new digital asset monitoring tools arrive during 2027.
Hong Kong Secretary for Financial Services and the Treasury Christopher Hui said during an Oct. 5 Legislative Council Finance Committee policy briefing that the government would introduce an amendment bill covering the four service areas this year. The plan follows consultations completed by the Financial Services and the Treasury Bureau and Securities and Futures Commission.
The proposal would extend Hong Kong’s licensing system beyond virtual asset trading platforms and stablecoin issuers. It does not mean the four new regimes have taken effect. The legislation must first be introduced to the Legislative Council and pass through the lawmaking process.
Hong Kong wants licenses across four crypto services
The planned bill covers virtual asset dealing, custody, advisory and management. Regulators have spent more than a year preparing separate rules for each activity before combining the legislative work into the next stage of Hong Kong’s crypto framework.
For virtual asset dealing, the proposed regime is designed to follow parts of the framework used for Type 1 securities dealing. The SFC would license and supervise firms carrying out covered dealing activities, while exemptions similar to those available in conventional securities markets have been under consideration.
Custody rules focus on firms responsible for safeguarding private keys belonging to clients. The December 2025 consultation conclusions said the regime would cover risks tied to holding client virtual assets in Hong Kong, including controls intended to protect customer property.
Advisory and management services would sit under separate licensing regimes. The SFC said in May that advisory rules would broadly follow Type 4 securities regulation, while 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 developing the proposals.
Hong Kong’s proposed crypto advisory and management licensing rules received support during the consultation process. The May consultation conclusions brought those two areas into the same legislative timetable as dealing and custody.
Regulators have already finished the main consultations
Hong Kong began consulting on standalone dealing and custody licenses in June 2025. More than 190 responses were received before the FSTB and SFC published their conclusions on Dec. 24. Regulators then moved ahead with legislative drafting.
At the same time, authorities opened another consultation for advisory and management services. The consultation closed in January 2026 and attracted 51 responses from market participants, industry bodies and professional organizations.
The FSTB and SFC confirmed the results in May, saying they would finalize legislative proposals under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. The announcement kept the target of submitting legislation during 2026.
Crypto.news previously covered Hong Kong’s plan to expand regulation from crypto trading into dealing and custody services when the government included the legislation in its 2026 financial agenda.
Hong Kong already regulates trading platforms and stablecoins
The new bill would sit alongside licensing systems that are already operating.
Hong Kong’s virtual asset trading platform regime requires covered exchanges serving the local market to obtain SFC authorization. Existing platforms face requirements covering investor protection, governance, asset handling and anti-money laundering controls.
Custody requirements for licensed platforms have been tightened separately. SFC introduced stricter crypto custody standards covering cold wallets, withdrawals and cybersecurity controls in August 2025.
Stablecoin issuance falls under another system overseen by the Hong Kong Monetary Authority. The Stablecoins Ordinance took effect on Aug. 1, 2025, requiring businesses covered by the law to obtain a license for fiat-referenced stablecoin issuance.
The HKMA’s 2025 annual report confirmed that the first two stablecoin issuer licenses were granted in April 2026 following the regulator’s application review. The authority has said licensees must meet requirements covering reserves, governance, redemption and anti-money laundering controls.
Crypto.news previously reported on Hong Kong’s move to combine stablecoin licensing with new rules for virtual asset dealers and custodians. Advisory and management services were subsequently added to the legislative package.
New surveillance tools are being added alongside licensing
Hong Kong’s 2026 Policy Address goes beyond the four proposed licenses. The government said the SFC would continue improving virtual asset licensing rules and issue more detailed regulatory guidance for service providers. Licensed platforms are expected to support trading in regulated stablecoins, while rules for tokenized investment products will be expanded to cover suitable assets including tokenized gold.
The SFC is scheduled to bring a digital asset custody surveillance system into operation during the second half of 2026. Its CrypTech program is then expected to add big-data market surveillance and anti-money laundering monitoring components in 2027.
At the central-bank level, the HKMA plans to introduce central bank digital currency settlement and 24/7 operations through EnsembleTX around the end of 2026. The authority’s annual report says EnsembleTX has been operating as the pilot phase of Project Ensemble, with support for tokenized central-bank money being developed during 2026.
The amendment bill is the next major step
Hui’s Oct. 5 remarks keep the four-service licensing bill on the government’s 2026 legislative timetable. Authorities have not announced a commencement date for the new licenses in the materials reviewed for this report.
Once introduced, the amendment bill will go through Hong Kong’s Legislative Council process before the new requirements can become law. Exact implementation dates, final exemptions and application procedures will depend on the legislation and subsequent regulatory guidance.
The government is moving on other financial-market projects under the same 2026 policy program. Hong Kong’s central clearing and settlement system for gold is scheduled to begin formal operations in the first quarter of 2027, after running in trial form during 2026.
HKEX is expected to announce details this year for a new RMB-denominated gold futures contract with physical settlement. The 2026 Policy Address says the contract forms part of plans to expand Hong Kong’s gold and commodities market.
For virtual assets, the SFC continues to encourage companies already providing or planning to provide dealing, custody, advisory or management services to begin discussions with regulators before the new licensing regimes take effect.
