Four PillarsFour PillarsAsia Digital Asset Policy Center

East Asia

Hong Kong

Asia's most complete licensing stack: 13 licensed exchanges, a stablecoin law with two issuers, and dealing and custody rules still pending.

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13SFC-licensed virtual asset trading platforms
2 of 36Stablecoin issuer applicants licensed by the HKMA
HKD 25mMinimum paid-up capital for a licensed stablecoin issuer

Hong Kong began cautiously.

In 2019 the Securities and Futures Commission (SFC) offered an opt-in licence that only caught platforms trading security tokens, and OSL became the first licensee in December 2020, restricted to professional investors.

The October 2022 policy statement changed course: same activity, same risk, same regulation, with retail access and spot ETFs on the table.

Read the full story

The turning point was 1 June 2023, when an amendment to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance made an SFC licence mandatory for every centralised platform serving Hong Kong, whatever it lists.

Retail investors could trade large-cap tokens on licensed venues for the first time.

The JPEX collapse that September, involving about HKD 1.5 billion and more than 2,500 complaints, showed what the unlicensed alternative looked like.

By May 2026 the SFC had licensed 13 platforms, from OSL and HashKey to the crypto arms of the brokers Futu and Tiger, and its ASPIRe roadmap has let them share global order books and list more products.

The Stablecoins Ordinance took effect on 1 August 2025, and in April 2026 the Hong Kong Monetary Authority (HKMA) licensed just two issuers, Anchorpoint Financial and HSBC, out of 36 applicants.

Separately, the HKMA has moved tokenised deposits into real-value pilots under EnsembleTX, and in September 2026 the Government priced its fourth digital green bond, about HKD 20 billion, settling the HKD tranche partly in tokenised deposits.

For builders the path is clear but expensive: an exchange licence means an external assessor, 98% cold storage and months of review, and a stablecoin licence is effectively reserved for banks and bank-led consortia.

The gap to watch is dealing, custody, advisory and management.

All four were consulted on by May 2026, but as of early October 2026 the bill had not yet reached the Legislative Council, so OTC desks and standalone custodians remain outside a dedicated licence.

Who regulates

  • SFCSecurities and Futures Commission

    In charge of

    Hong Kong's independent securities and futures regulator under the Securities and Futures Ordinance. It licenses brokers and fund managers, authorises public funds and polices market misconduct.

    On crypto

    Licenses virtual asset trading platforms under the AMLO, mandatory since 1 June 2023 (13 licensed as of October 2026), and authorises spot VA ETFs. Its ASPIRe roadmap sets its agenda, it flagged JPEX as unlicensed in September 2023, and it will run the planned dealing, custody, advisory and management licences.

    SFC website
  • HKMAHong Kong Monetary Authority

    In charge of

    Hong Kong's central banking institution. It keeps the Hong Kong dollar linked to the US dollar, supervises banks and stored value facilities and runs the interbank payment systems.

    On crypto

    Licenses stablecoin issuers under the Stablecoins Ordinance, in force 1 August 2025; it granted just two licences, to Anchorpoint Financial and HSBC, from 36 applicants in April 2026. It also sets banks' crypto rules, including Basel capital treatment from 2026, and runs EnsembleTX and e-HKD work.

    HKMA website
  • FSTBFinancial Services and the Treasury Bureau

    In charge of

    The government bureau responsible for financial services and public finance policy. It sets the direction for the financial sector, drafts financial legislation and coordinates the financial regulators.

    On crypto

    Wrote the 2022 virtual asset policy statement and the 2025 Policy Statement 2.0 with its LEAP framework, and drafts the bills behind each regime. With the SFC it concluded consultations on dealing, custody, advisory and management licences and aims to introduce one bill within 2026.

    FSTB website
  • IRDInland Revenue Department

    In charge of

    Hong Kong's tax authority. It assesses and collects profits tax, salaries tax, property tax and stamp duty, and runs automatic exchange of tax information with other jurisdictions.

    On crypto

    Under its DIPN 39 guidance, profits from trading digital assets as a business are subject to profits tax, while capital gains are not taxed. Its CARF bill, gazetted 22 May 2026 and now before LegCo, would require crypto service providers to register with it and report user transactions from 1 January 2027.

    IRD website

What to watch

  • The single AMLO amendment bill creating SFC licences for virtual asset dealing, custody, advisory and management, which the Government targets for introduction within 2026.
  • Retail launch of the first licensed HKD stablecoins: HSBC named its coin HSBC RedCoin on 30 September 2026 and plans to launch it in PayMe and its HK app in the second half of 2026, and Anchorpoint's HKDAP targets retail after its professional-investor phase.
  • Policy Address 2026 measures: regulated stablecoins trading on licensed platforms, tokenised gold and other RWAs, and CBDC settlement with 24/7 operations under EnsembleTX by around the end of 2026.
  • The Crypto-Asset Reporting Framework bill, before a LegCo Bills Committee since June 2026, which would require crypto service providers to register with the IRD and report from 1 January 2027.
Company map 121 companies that make up Hong Kong's crypto industry, by what they do

Quick answers

Who regulates crypto in Hong Kong?

Four authorities shape crypto rules in Hong Kong. SFC (Securities and Futures Commission): licenses and supervises virtual asset trading platforms, VA fund managers and brokers, and authorises VA ETFs. HKMA (Hong Kong Monetary Authority): licenses fiat-referenced stablecoin issuers, supervises banks' crypto activities and runs e-HKD and Project Ensemble. FSTB (Financial Services and the Treasury Bureau): sets digital asset policy and drafts the bills that create each new licensing regime. IRD (Inland Revenue Department): administers profits tax on digital asset trading and is implementing the OECD Crypto-Asset Reporting Framework.

Do crypto exchanges need a licence in Hong Kong?

Yes, under a dedicated regime. Mandatory SFC licence since June 2023; 13 platforms licensed, unchanged since May 2026. The main licences are Virtual asset trading platform (VATP) licence from SFC, held by 13 as of 5 Oct 2026; Stablecoin issuer licence from HKMA, held by 2 as of 5 Oct 2026; and Type 1 and Type 9 licences with virtual asset conditions from SFC. Four Pillars rates exchange licensing in Hong Kong as comprehensive (reviewed 5 Oct 2026).

Are stablecoins regulated in Hong Kong?

Yes, under a dedicated regime. Stablecoins Ordinance in force Aug 2025; 2 of 36 applicants licensed in April 2026. The most recent official text is LCQ6: Development and regulation of stablecoins (HKSAR Government (Legislative Council reply), 10 Jun 2026, guidance). Four Pillars rates its stablecoin regime in Hong Kong as comprehensive (reviewed 5 Oct 2026).

How is crypto taxed in Hong Kong?

No capital gains tax; trading profits fall under profits tax. Four Pillars rates tax clarity in Hong Kong as partial (reviewed 5 Oct 2026).

Can real-world assets be tokenised in Hong Kong?

Yes, under a dedicated regime. SFC tokenisation circulars since 2023; secondary trading of tokenised funds allowed from April 2026. Four Pillars rates tokenisation and real-world assets in Hong Kong as comprehensive (reviewed 5 Oct 2026).

What changed most recently in Hong Kong's crypto rules?

16 Sep 2026: Policy Address backs stablecoin trading and tokenised RWAs. It commits to regulated stablecoins on licensed platforms and CBDC settlement under EnsembleTX. 12 Aug 2026: Anchorpoint launches HKDAP for professional investors. The first HKD stablecoin issued under the Ordinance, with retail access targeted for later.

What should companies watch next in Hong Kong?

The single AMLO amendment bill creating SFC licences for virtual asset dealing, custody, advisory and management, which the Government targets for introduction within 2026. Retail launch of the first licensed HKD stablecoins: HSBC named its coin HSBC RedCoin on 30 September 2026 and plans to launch it in PayMe and its HK app in the second half of 2026, and Anchorpoint's HKDAP targets retail after its professional-investor phase. Policy Address 2026 measures: regulated stablecoins trading on licensed platforms, tokenised gold and other RWAs, and CBDC settlement with 24/7 operations under EnsembleTX by around the end of 2026.

Timeline

  1. Policy Address backs stablecoin trading and tokenised RWAs

    It commits to regulated stablecoins on licensed platforms and CBDC settlement under EnsembleTX.

  2. Anchorpoint launches HKDAP for professional investors

    The first HKD stablecoin issued under the Ordinance, with retail access targeted for later.

  3. HKMA grants the first two stablecoin issuer licences

    Anchorpoint Financial (Standard Chartered, HKT, Animoca Brands) and HSBC, from 36 applications.

  4. Dealing and custody consultation conclusions published

    Both regimes will sit with the SFC; a further consultation on advisory and management followed.

  5. Stablecoins Ordinance takes effect

    Issuing a fiat-referenced stablecoin in Hong Kong, or an HKD-referenced one anywhere, needs an HKMA licence.

  6. SFC publishes the ASPIRe roadmap

    Five pillars and 12 initiatives, including new regimes for OTC dealing and custody.

  7. Asia's first spot Bitcoin and Ether ETFs list on HKEX

  8. SFC names JPEX as unlicensed

    Police later reported about HKD 1.5 billion involved, over 2,500 complaints and 28 arrests by mid-October.

  9. Mandatory VATP licensing takes effect

    Every centralised platform serving Hong Kong now needs an SFC licence, and retail trading is permitted.

  10. Government issues its first virtual asset policy statement

    It committed to retail access, spot ETFs and a mandatory licensing regime for platforms.

  11. OSL becomes the first licensed platform

    Licensed under the opt-in regime and restricted to professional investors.

  12. SFC opens an opt-in platform regime

    The position paper only reached platforms trading at least one security token, so Bitcoin-only venues stayed outside.

Cite this page: Four Pillars Asia Digital Asset Policy Center, “Hong Kong crypto regulation”, reviewed 5 Oct 2026, https://policy.4pillars.io/hong-kong. Free to reuse with attribution; also as markdown and JSON.

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