Hong Kong Plans New Licensing for Crypto Dealers and Custodians by 2026

Summary of Hong Kong's New Licensing Regimes for Virtual Assets

Hong Kong regulators are introducing new licensing regimes for virtual asset dealers and custodians to establish a comprehensive digital asset framework.
The Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) confirmed these plans after public consultation.
The rules will extend to over-the-counter desks, brokers, and asset custodians, aligning them with licensed trading platforms.
Dealers will adhere to standards similar to traditional securities firms, while custodians will face stringent private key management and asset segregation requirements.
This initiative is part of the SFC's "ASPIRe" roadmap to position Hong Kong as a global virtual asset hub.
A new one-month consultation has been launched on regulating VA advisory and asset management services, aiming for legislative action by 2026.
This positions Hong Kong against mainland China's restrictive crypto policies and in competition with Singapore for being Asia’s primary digital asset center.

The licensing regimes signal to institutional capital that Hong Kong offers a complete regulatory structure for digital assets.
The regulation of custodians addresses counterparty risks, encouraging significant capital investment.
This creates a foundation for complex products like structured derivatives and tokenized securities, ensuring all parts of the value chain meet supervisory standards.
Financial institutions are likely to accelerate their digital asset strategies in Hong Kong, using it as a compliant gateway to the Asian market.