Hong Kong will broaden its crypto rule book next year, with regulators preparing new licensing regimes for virtual asset dealers and custodians, as the city pushes to deepen its digital asset market even as Beijing tightens its scrutiny on crypto activities on the mainland.
Regulators said on Wednesday they would finalise legislative proposals for two new licensing frameworks – one for providers of virtual asset dealing services, previously referred to as over-the-counter (OTC) trading services, and another for custodian services – with the aim of introducing a bill into the Legislative Council in 2026.
Since announcing its ambition in late 2022 to become a leading digital-asset hub, Hong Kong has rolled out licensing regimes for crypto exchanges and stablecoin issuers and encouraged tokenisation activities, but such initiatives have faced hurdles such as high compliance costs and heightened scrutiny.
In a government statement, SFC chief executive officer Julia Leung called the latest plans “significant progress” that would keep Hong Kong “at the global forefront” of digital asset market developments, and said that the city would maintain “an unwavering commitment to responsible innovation”.
The latest measures reflect Hong Kong’s push to deepen its digital asset market even as the sector faces growing headwinds.
