Stablecoin

Wednesday

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Hong Kong regulators will proceed with legislating licensing regimes for crypto dealers and custodians after wrapping up consultations, as part of a broader push to tighten oversight.
In a Wednesday <a href="https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=25PR210" rel="noopener noreferrer nofollow">announcement</a>, the city’s Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) said that they had concluded consultations on proposed licensing regimes, which would require firms providing crypto dealings or custody services in Hong Kong to obtain licenses once the framework takes effect.
The move adds to the city’s expanding crypto licensing framework. Earlier in 2025, Hong Kong brought its Stablecoin Ordinance into force, opening a new licensing regime for stablecoin issuers.
Hong Kong already requires crypto trading platforms to be licensed. The current mandatory regime builds on earlier opt-in framework introduced in 2020, with 11 companies having received approval from the SFC to date.
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 <img alt="Hong Kong, Cryptocurrency Exchange, Digital Asset" src="https://s3.cointelegraph.com/uploads/2025-12/019b5029-30be-7b65-91e5-29148baacba8.jpg" title="">
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 Hong Kong has rejected more applicants for its crypto exchange license than it approved. Source: <a href="https://www.sfc.hk/en/Welcome-to-the-Fintech-Contact-Point/Virtual-assets/Virtual-asset-trading-platforms-operators/Lists-of-virtual-asset-trading-platforms" rel="noopener noreferrer nofollow">SFC</a>
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Related: <a href="https://cointelegraph.com/news/hong-kong-insurance-authority-proposes-allowing-insurances-to-invest-in-crypto-report" rel="noopener noreferrer nofollow">Crypto may enter insurers’ portfolios as Hong Kong reviews capital rules</a>
<h2 id="hong-kong-s-broader-crypto-initiatives">Hong Kong’s broader crypto initiatives</h2>
Hong Kong has long expressed its <a href="https://cointelegraph.com/magazine/the-one-thing-these-6-global-crypto-hubs-all-have-in-common/" rel="noopener noreferrer nofollow">ambitions to develop into a crypto hub</a>. The city already functions as a financial hub with its business-friendly tax regimes and its reputation as a finance gateway between mainland China and global capital markets.
Beyond crypto licensing rules, Hong Kong has also tested <a href="https://cointelegraph.com/learn/articles/cryptocurrency-regulations-in-hong-kong" rel="noopener noreferrer nofollow">tokenization initiatives</a>. In Thursday’s announcement, regulators added that the pending introduction of licensing regimes for crypto dealers and custodians is part of the city’s effort to establish a comprehensive regulatory framework for digital assets alongside stablecoins and tokenization.
​Julia Leung, CEO of the SFC, said that the further development of Hong Kong’s crypto regulatory framework would help the city maintain its position in global digital asset market developments by “fostering a trusted, competitive and sustainable ecosystem.”
Related: <a href="https://cointelegraph.com/news/hong-kong-carf-crypto-tax-consultation" rel="noopener noreferrer nofollow">Hong Kong launches CARF crypto tax consultation to combat evasion</a>
<h2 id="new-advisory-and-management-consultation">New advisory and management consultation</h2>
The SFC also published a consultation <a href="https://apps.sfc.hk/edistributionWeb/api/consultation/openFile?lang=EN&amp;refNo=25CP12" rel="noopener noreferrer nofollow">paper</a> on the same day, seeking public feedback on proposals to introduce licensing regimes for crypto advisory service providers and management service providers.&nbsp;
The consultation links the proposed regimes to Hong Kong’s existing <a href="https://cointelegraph.com/learn/articles/anti-money-laundering-aml-in-crypto" rel="noopener noreferrer nofollow">Anti‑Mone‑Laundering (AML)</a> framework and Counter‑Terrorist Financing Ordinance, and sets out how advisory and management activities involving digital assets will be brought within the regulatory framework.
It also invites comments on matters such as licensing scope, regulatory powers, sanctions and appeal arrangements, which will be taken into account in finalizing the proposals.

Hong Kong proceeds with licensing regimes for virtual asset dealers and custodians

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