Hong Kong is moving ahead with new rules for crypto dealers and custodians, and it looks like regulators are done talking and ready to act. After wrapping up public consultations, the city plans to officially roll out licensing requirements for companies that deal with or store digital assets.
In an announcement on Wednesday, Hong Kong’s Financial Services and the Treasury Bureau, along with the Securities and Futures Commission, said that once the new framework kicks in, any firm offering crypto trading or custody services in the city will need to get licensed. No more operating in a gray area.
This is just the latest step in Hong Kong’s growing crypto rulebook. Earlier in 2025, the city rolled out its Stablecoin Ordinance, which created a separate licensing system specifically for stablecoin issuers. On top of that, crypto trading platforms are already required to hold licenses. That mandatory system builds on an earlier opt-in model from 2020, and so far, 11 companies have managed to get approval from the SFC.
Big crypto ambitions
None of this is really surprising if you’ve been watching Hong Kong’s crypto plans. The city has been pretty open about wanting to become a major crypto hub. It already has a strong reputation as a global financial center, helped by low taxes and its role as a bridge between mainland China and international markets.
Licensing isn’t the only thing happening either. Hong Kong has also been experimenting with tokenization projects. In the same announcement, regulators said the upcoming dealer and custodian licenses are part of a bigger plan to create a full, well-rounded regulatory system for digital assets, covering everything from stablecoins to tokenized products.
Julia Leung, the CEO of the SFC, said these steps will help Hong Kong stay competitive on the global digital asset stage by building a crypto environment that’s trusted, competitive, and built to last.
More rules could be coming
On the same day, the SFC also released another consultation paper, this time asking for public feedback on proposed licensing rules for crypto advisory firms and asset management service providers.
These proposed rules would tie crypto advisory and management services into Hong Kong’s existing anti-money laundering and counter-terrorist financing laws. The idea is to make sure that anyone giving advice or managing digital assets is clearly covered by the regulatory framework.
Regulators are also asking for opinions on things like how broad the licenses should be, what enforcement powers they should have, and how penalties and appeals would work. All of that feedback will be considered before the final rules are locked in.
In short, Hong Kong isn’t slowing down on crypto. It’s tightening the rules, but doing it with the clear goal of making the city a serious, well-regulated digital asset hub.
Read Also: Crypto M&A activity surges to $8.6 billion in 2025, FT reports
