Hong Kong to Submit Crypto Licensing Bill by End of 2026

Hong Kong’s government has reaffirmed plans to submit a bill by the end of 2026 that would introduce new licensing regimes for several digital asset services.

Secretary for Financial Services and the Treasury Christopher Hui said at a policy briefing on October 5 that the government would submit the amendment bill “within this year.” The proposed framework would cover four areas: digital asset trading, custody, advisory services and asset management.

The legislation is intended to expand Hong Kong’s existing regulatory framework as digital asset businesses develop new services. The government had already committed to introducing legislation this year as part of its broader plan to establish a comprehensive regulatory framework for digital assets.

For advisory and asset management services, Hong Kong’s Financial Services and the Treasury Bureau and Securities and Futures Commission completed a public consultation in May. Their proposal would regulate virtual asset advisory and management providers under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, using the same regulatory approach as comparable securities activities.

The proposed regimes would sit alongside Hong Kong’s existing licensing system for virtual asset trading platforms and its new framework for fiat-referenced stablecoin issuers. The Hong Kong Monetary Authority began processing stablecoin license applications earlier this year, and granted the first stablecoin issuer licenses in April.

The government’s latest statement keeps the legislation on its previously announced timetable. The amendment bill will still need to go through Hong Kong’s legislative process before the new licensing requirements take effect.