Hong Kong Moves Forward With Licensing for Virtual Asset Dealers & Custodians

Hong Kong continues to strengthen its position as a regulated digital asset hub. The FSTB and SFC have concluded consultations and will proceed with mandatory licensing regimes for virtual asset dealing and custody firms.

◼️ What’s changing

◼️ Mandatory licenses for crypto dealers and custodians operating in Hong Kong

◼️ Expansion of the existing licensed exchange framework (11 platforms approved so far)

◼️ Alignment with AML & Counter-Terrorist Financing rules

◼️ Part of a bigger strategy

◼️ Stablecoin Ordinance already in force (issuer licensing)

◼️ Active tokenization pilots and guidance

◼️ Ongoing consultation for crypto advisory and asset management service providers

◼️ Why it matters

◼️ Higher compliance standards → stronger investor protection

◼️ Clear rules attract institutional capital

◼️ Positions Hong Kong as a regulated bridge between global markets and Asia

SFC CEO Julia Leung emphasized the goal: building a trusted, competitive, and sustainable digital asset ecosystem.

This signals a clear message — crypto is welcome in Hong Kong, but under robust regulation.

#CryptoRegulation #DigitalAssets #Web3Education #InstitutionalCrypto #ArifAlpha