Hong Kong has taken a major step in crypto licensing as regulators tighten oversight. Digital assets are here to stay, but with clearer regulations.
The city is reinforcing its role as a global digital asset hub with this revision to its crypto licensing regime.
Hong Kong’s Crypto Rules?
Hong Kong’s Financial Services, the Treasury Bureau, and the Securities and Futures Commission have concluded consultations. The new laws will regulate virtual asset dealers and custodians. Once it takes effect, companies dealing in crypto assets in Hong Kong will have to get licenses.
This is no longer optional. This relates to the current Crypto Licensing regime in Hong Kong, where crypto trading platforms are already licensed. To date, they have only approved 11 companies and declined many others.
🇭🇰 NEW: Hong Kong moves forward with licensing requirements for virtual asset dealers and custodians, expanding its regulatory framework beyond stablecoin issuers. pic.twitter.com/0ZwIcEWiIG
— Cointelegraph (@Cointelegraph) December 25, 2025
How the New Licensing Regimes Will Work
Under the proposed rules:
- Regulators will govern crypto dealers the same way they govern licensed securities trading firms.
- Crypto custodians will be subject to certain requirements to protect client assets.
- The major focus is asset protection, operational risk, and investor safety.
Regulators encouraged companies to engage early through pre-application discussions. This will help the firms prepare before the official commencement of the rules. This strategy indicates that Hong Kong does not desire disorder, but compliance.
Expansion Into Advisory and Management Services
Alongside the dealer and custodian rules, regulators have launched a new consultation covering:
- Crypto advisory service providers
- Crypto asset managers
The regulation follows the “same business, same risks, same rules” principle. These services will be subject to the same rules as traditional financial advisory and asset management firms. The proposals also link crypto licensing to anti-money-laundering laws. They expand the SFC’s powers to enforce counter-terrorist financing rules.
LATEST: 🏛️ Hong Kong regulators have finished consultations on proposed licensing regimes that will require firms providing crypto dealing or custody services to obtain licenses once the framework takes effect. pic.twitter.com/1z7nd3Mdoo
— CoinMarketCap (@CoinMarketCap) December 24, 2025
Hong Kong already:
- Enforced licensing for crypto exchanges.
- Introduced a stablecoin licensing framework in early 2025.
- Issued guidance on tokenization.
According to SFC CEO Julia Leung, the goal is to create a trusted, competitive, and sustainable digital asset ecosystem.
Conclusion
Hong Kong’s expanding crypto licensing framework welcomes innovation under strict regulation. By covering dealers, custodians, advisors, and managers, the city is building one of the most complete crypto rulebooks in the world.
Disclaimer
The information provided by Altcoin Buzz is not financial advice. It is intended solely for educational, entertainment, and informational purposes. Any opinions or strategies shared are those of the writer/reviewers, and their risk tolerance may differ from yours. We are not liable for any losses you may incur from investments related to the information given. Bitcoin and other cryptocurrencies are high-risk assets; therefore, conduct thorough due diligence. Copyright Altcoin Buzz Pte Ltd.
