Hong Kong Plans New Crypto Licensing Rules for Trading and Custody

Highlights:

• Hong Kong plans new licensing rules for crypto dealing, custody, advisory and management services in 2026.
• The proposed framework would expand regulation beyond exchanges and bring more virtual asset businesses under supervision.
• Officials aim to strengthen investor protection while supporting Hong Kong’s broader push for financial technology growth.

Hong Kong plans to introduce new licensing rules for several major virtual asset services as it expands oversight of the crypto industry. The proposed framework will cover virtual asset dealing, custody, advisory and management services.

Hong Kong Secretary for Financial Services and the Treasury Christopher Hui announced the plan on October 5, during a Legislative Council Panel on Financial Affairs policy briefing. He said the government plans to submit an amendment bill within 2026 to establish the new licensing regimes. The announcement forms part of Hong Kong’s broader financial development strategy. The government wants to strengthen the city’s position as an international financial centre while supporting new areas of financial technology.

BREAKING: 🇭🇰 Hong Kong plans to introduce a licensing regime for crypto trading, custody, advisory and management services.

The draft bill is expected this year. pic.twitter.com/nC3jeCaeq8

— The Moon Show (@TheMoonShow) October 5, 2026

Hong Kong Expands Crypto Licensing Framework

Hong Kong already regulates virtual asset trading platforms. However, the government is now moving to bring more crypto-related services under formal supervision. The upcoming legislation will cover firms involved in virtual asset dealing and custody. It will also regulate businesses that provide crypto investment advice or manage virtual assets for clients.

Hong Kong has been developing these rules in stages. In May, the Financial Services and the Treasury Bureau and the Securities and Futures Commission (SFC) completed consultations on proposed licensing regimes for virtual asset advisory and management services.

Officials said the proposals received broad support from market participants and industry groups. The government and SFC then began finalizing legislation, with plans to introduce the bill to the Legislative Council during 2026. The proposed advisory rules will follow a framework similar to traditional securities advisory services. Meanwhile, virtual asset management rules will broadly follow the standards used for conventional asset managers.

Crypto Custody and Dealing Also Face Licensing

Hong Kong has also completed consultations covering virtual asset dealing and custody. The proposed custody rules focus heavily on how companies safeguard client assets and private keys. Private keys are the credentials that allow users to control and transfer crypto assets. Strong custody standards can therefore reduce the risk of lost or misused client funds.

For crypto dealing services, regulators plan to use an approach similar to the rules governing traditional securities dealers. Hong Kong officials have repeatedly applied the principle of using similar rules for businesses that create similar financial risks.

Hong Kong introduced its licensing regime for virtual asset trading platforms in June 2023. The new proposals would expand regulation beyond exchanges and cover more parts of the digital asset industry.

Hong Kong Pushes Wider Fintech Development

Hui also said Hong Kong will continue developing financial technology alongside stronger regulation. In addition to virtual assets, the October 5 policy briefing covered offshore renminbi markets, stock market reforms, wealth management, gold trading and sustainable finance. The government described financial technology as an area that could support new economic growth. Still, the government has not announced an exact date for the new crypto licensing regimes to take effect.