Hong Kong Sets 2026 Deadline for Comprehensive Crypto Licensing Framework
Hong Kong's Financial Services and Treasury Bureau (FSTB) and Securities and Futures Commission (SFC) have unveiled plans to implement a full licensing regime for cryptocurrency trading and custody services by 2026. The move follows a two-month public consultation that garnered over 190 responses, with draft legislation now being finalized.
The regulatory framework will align with the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), establishing standards comparable to traditional securities brokerage requirements. Custody solutions will prioritize private key security and client asset protection, while trading rules will define participant eligibility and compliance obligations.
This initiative forms part of the SFC's ASPIRe roadmap, designed to expand access to regulated digital asset markets. The announcement positions Hong Kong as a jurisdiction seeking to balance innovation with investor protection in the cryptocurrency sector.