Hong Kong government reaffirms end-2026 deadline for crypto licensing bill
Financial secretary Christopher Hui says a bill covering crypto dealing, custody, advisory and management will reach lawmakers before year-end
Hong Kong has repeated its timetable for the next big piece of its crypto rulebook. The government plans to send a bill to the Legislative Council by the end of 2026 that would license four types of virtual asset businesses: dealing, custody, advisory and management.
Secretary for Financial Services and the Treasury Christopher Hui confirmed the target during a Legislative Council Finance Committee policy briefing on October 5, 2026. With fewer than three months left in the year, the deadline is no longer abstract.
What the bill would actually do
The proposal comes jointly from the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC). It would be made as an amendment under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, known as Cap. 615.
The four licensing regimes would all be supervised by the SFC. Together, they extend oversight into areas that have so far sat outside the city’s main crypto framework.
- Dealing: This covers over-the-counter (OTC) trading, the desks that match large buyers and sellers away from public exchange order books.
- Custody: This targets firms that hold private keys on behalf of clients.
- Advisory: This applies to businesses that give advice on virtual assets.
- Management: This captures portfolio management services for digital assets.
The guiding philosophy is “same business, same risks, same rules.” The idea mirrors the existing Securities and Futures Ordinance, and each new crypto license category lines up with a corresponding type under that ordinance.
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Hui framed the bill as part of a broader 2026-2030 financial market development strategy. The proposal also sits under the government’s Policy Statement 2.0 on Digital Assets.
No grace period, and that is the headline risk
The proposal includes no transitional or grandfathering provisions. Businesses that do not already hold licensing from the SFC or the Hong Kong Monetary Authority (HKMA) may be required to stop operating once the new regulations commence.
Consultations on the dealing and custody regimes drew more than 190 responses, with conclusions published on December 24, 2025. The advisory and management consultations attracted 51 responses. Their conclusions were released on May 26, 2026.
How Hong Kong got here
Licensing of virtual asset trading platforms began in 2023, bringing centralized exchanges under SFC supervision. The Stablecoins Ordinance followed, taking effect on August 1, 2025. The new bill extends oversight to OTC desks, custodians, advisers and managers.