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Hong Kong: crypto & digital assets regulation

Regulated

HK VASP licensing via SFC; HKMA governs banking interface; Stablecoins Ordinance active

Lead regulator
Securities and Futures Commission (SFC) and Hong Kong Monetary Authority (HKMA)
Also involved
HKMA (banking interface/custody) · AML/CFT (FATF standards)
Core law
Securities and Futures Ordinance (SFO) and Stablecoins Ordinance
Entry capital
HKD 10m (Type 1 dealer)
Approval timeline
6-12 months
Customer assets
Omnibus account required; strict segregation mandated
Data protection
PDPO · PDPC
Sandbox
Yes - HKMA Supervisory Incubator for DLT

Hong Kong regulates crypto activities through a dual-regulator framework. The SFC licenses Virtual Asset Service Providers (VASPs) under the SFO, restricting retail access and mandating omnibus accounts. The HKMA supervises authorized institutions' interfaces with VASPs and custodial services. The Stablecoins Ordinance provides a specific regime for authorized stablecoin issuers.

Which licence do you need?

Your activityRequirementCapitalTimelineAuthority
Exchange / trading platformLicenceType 1 (Dealing in Securities) or Type 7 (Advising on Securities) License[1][2]

Retail access restricted; omnibus account mandatory

HKD 10m6-12 monthsSFC
Custody of client assetsLicenceType 1 License (with custody conditions)[3][4]

Cold storage and key management standards apply

HKD 10m6-12 monthsSFC
Token issuance / public offeringLicenceType 1 or Type 4 License[5][6]

Tokenized traditional assets require regulator approval

HKD 10m6-12 monthsSFC
Broker-dealer / OTC deskLicenceType 1 License[7][8]

OTC desks must comply with SFC licensing conditions

HKD 10m6-12 monthsSFC
Stablecoin issuanceLicenceAuthorized Institution (AI) or Licensed Corporation[9][10]

Stablecoins Ordinance governs issuance and redemption

Varies—HKMA
Crypto payments acceptanceLicenceType 1 License[1][2]

Crypto payments treated as dealing in securities

HKD 10m6-12 monthsSFC
Mining / staking servicesLicenceType 1 or Type 4 License[11][12]

Staking services permitted under specific conditions

HKD 10m6-12 monthsSFC
Advisory / portfolio managementLicenceType 4 License[7][1]

Advisory on VA products restricted to professionals

HKD 10m6-12 monthsSFC

New — what changed recently

  • 2026-05-27Guidance on VA-Related Activities Involving Relevant Stablecoins — Relaxed regulatory requirements for authorized institutions dealing in stablecoins authorized under the Stablecoins Ordinance.[9]
  • 2026-05-27Licensing and Registration Conditions for VA Dealing and Advisory — Mandated omnibus accounts for VA dealing and advisory services to ensure client asset segregation.[7]
  • 2025-12-19Cryptoassets Standard: Revised SPM Modules — Gazettal of revised modules implementing Basel Committee standards for prudential treatment of cryptoasset exposures.[13]
  • 2025-09-30Supplemental Joint Circular on Intermediaries’ VA Activities — Permitted intermediaries to offer staking services and utilize off-platform trading services under strict conditions.[11]

Market-entry checklist

  1. 1Secure SFC Type 1 LicenseApply for Type 1 license with HKD 10m minimum capital and demonstrate robust VA custody controls.
  2. 2Implement Omnibus AccountsSet up SFC-compliant omnibus accounts for client virtual assets to ensure strict segregation.
  3. 3Adopt Cold Storage StandardsImplement HKMA-endorsed cold storage and key management procedures for safeguarding client assets.
  4. 4Restrict Retail AccessEnsure marketing and distribution of VA products are restricted to professional investors only.
  5. 5Align with Basel Crypto StandardsUpdate capital adequacy and disclosure frameworks to comply with the 2026 Cryptoassets Standard.

Sources

  1. Joint circular on intermediaries’ virtual asset-related activities · 2023-12-22
  2. Joint Circular on Intermediaries’ Virtual Asset-Related Activities · 2023-12-22
  3. Updated Guidance on Expected Standards on Provision of Custodial Services for Digital Assets by Authorized Institutions · 2026-05-27
  4. Updated Guidance on Expected Standards on Provision of Custodial Services for Digital Assets by Authorized Institutions · 2026-05-27
  5. SPM CRP-1: Update on Cryptoassets Classification Conditions · 2026-06-03
  6. Sale and distribution of tokenised products · 2024-02-20
  7. Licensing and Registration Conditions for Virtual Asset Dealing and Advisory Services · 2026-05-27
  8. Supplemental Joint Circular on Intermediaries’ Virtual Asset-Related Activities · 2025-09-30
  9. Guidance on Virtual Asset-Related Activities Involving Relevant Stablecoins · 2026-05-27
  10. Relevant Stablecoin-related Activities · 2026-05-27
  11. Supplemental Joint Circular on Intermediaries’ Virtual Asset-Related Activities · 2025-09-30
  12. HKMA Standards for Authorized Institutions Providing Staking Services from Custodial Services · 2025-04-07
  13. Cryptoassets standard: gazettal of revised SPM modules and code of practice · 2025-12-19
This guide is compiled automatically from 13 primary-source documents published by Hong Kong's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.