Is crypto legal in Hong Kong? Rules & regulation (2026)

Legal framework

Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) VATP regime administered by the Securities and Futures Commission (SFC), the Stablecoins Ordinance (Cap. 656) administered by the Hong Kong Monetary Authority (HKMA), and the Securities and Futures Ordinance (Cap. 571) for security tokens; further dealer/custodian/adviser/manager licensing regimes scheduled for legislation in 2026.

Status by sub-area

• Stablecoins

  In force

  The Stablecoins Ordinance (Cap. 656) commenced on 1 August 2025, creating an HKMA licensing regime for issuers of fiat-referenced stablecoins with high-quality liquid reserve backing, par-value redemption, capital (minimum HK$25m paid-up), audit/attestation and local-presence requirements; first two issuer licences granted in April 2026.

• Exchanges / VASP

  In force

  Centralised virtual asset trading platforms operating in Hong Kong or actively marketing to Hong Kong investors must be licensed by the SFC under the AMLO VASP regime (in force since 1 June 2023) and, where security tokens are traded, under the SFO Type 1/7 regime; retail access is permitted with strict suitability and product-due-diligence rules.

• Token Offerings

  In force

  Token offerings are regulated under existing securities law: tokens with features of shares/debentures/CIS are 'securities' under the Securities and Futures Ordinance and require prospectus registration or authorisation unless an exemption (e.g. professional-investor only) applies; in April 2026 the SFC issued a circular permitting secondary trading of tokenised SFC-authorised products on licensed VATPs.

• Custody

  Proposed

  There is no stand-alone custody licence yet — custody by licensed VATPs is regulated through SFC conduct rules (segregation in associated entities, 98% cold storage, insurance) — but the FSTB and SFC concluded a consultation on 24 December 2025 to introduce a dedicated AMLO licensing regime for VA custodian service providers, with a bill targeted for the Legislative Council in 2026.

  Still pending: AMLO VA custodian licensing bill targeted for Legislative Council in 2026, not yet enacted

• DeFi

  Partial

  Hong Kong has not enacted a DeFi-specific framework; the SFC applies a technology-neutral, activity-based test under which a DeFi protocol/front-end may fall within VATP, dealing, advisory or CIS regulation where an identifiable party exercises control or arranges the activity, but truly autonomous protocols are not yet explicitly covered.

  Still pending: Truly autonomous DeFi protocols lack explicit regulatory coverage under SFC activity-based test

• Tax

  Partial

  There is no crypto-specific tax law; Hong Kong applies the general Inland Revenue Ordinance and IRD Departmental Interpretation and Practice Note 39 (Revised), with no capital gains tax and no VAT/GST. Crypto held as long-term investment is generally not taxed on disposal, while frequent or business-like trading, mining, staking and crypto received as remuneration are subject to profits tax or salaries tax.

How to get a crypto license in Hong Kong

To provide crypto-asset services in Hong Kong you need a Virtual Asset Trading Platform (VATP) licence, supervised by the Securities and Futures Commission (SFC), under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) VATP regime, in force since June 2023.

Authority

the Securities and Futures Commission (SFC)

License required

a Virtual Asset Trading Platform (VATP) licence

Framework / law

the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) VATP regime, in force since June 2023

Minimum capital

substantial: a minimum paid-up share capital of HK$5 million, plus liquid-capital requirements

Timeline

typically 9–12+ months; the SFC regime is demanding

Cost

application and annual fees plus heavy compliance, custody, insurance and audit costs

Passporting

No: an SFC VATP licence is specific to Hong Kong.

Hong Kong reopened to retail crypto trading under a mandatory SFC licensing regime; custody, insurance and token due-diligence rules are stringent.

Key points: crypto & digital assets in Hong Kong

1. 01VATP licensing regime

   The SFC operates a mandatory licensing regime for centralised virtual asset trading platforms under the AMLO (in force since 1 June 2023) plus the SFO Type 1/7 framework for security tokens; 47 platforms were licensed after a batch grant on 8 April 2026.

   sfc.hk coinreporter.io

2. 02Stablecoins Ordinance in force

   The Stablecoins Ordinance (Cap. 656) took effect on 1 August 2025, requiring HKMA licensing for issuers of fiat-referenced stablecoins issued in Hong Kong or pegged to HKD, with reserve-backing, redemption, audit and capital requirements; the HKMA issued the first two issuer licences on 10 April 2026.

   hkma.gov.hk hkma.gov.hk

3. 03Expansion to dealers and custodians

   On 24 December 2025 the FSTB and SFC published consultation conclusions on extending AMLO licensing to virtual asset dealing and custodian services, with a bill targeted for the Legislative Council in 2026; a further consultation on VA advisory and management services closed on 23 January 2026.

   info.gov.hk sidley.com

4. 04Security token offerings

   Tokenised securities are treated as securities under the SFO and subject to prospectus/authorisation requirements unless an exemption (e.g. professional investor) applies; in April 2026 the SFC permitted tokenised SFC-authorised investment products to trade on licensed VATPs in the secondary market.

   sfc.hk davispolk.com

5. 05Tax treatment

   Hong Kong has no capital gains tax; the IRD (per DIPN 39) treats crypto as virtual commodities and applies profits tax to trading/business activity using badges-of-trade, with no VAT/GST regime in Hong Kong.

   aplus.hkicpa.org.hk kpmg.com

6. 06DeFi posture

   There is no bespoke DeFi statute; the SFC applies a functional/technology-neutral test — where a regulated activity (e.g. dealing in securities, providing a VA trading service) is carried on by an identifiable controlling party, existing SFO/AMLO licensing requirements apply.

   sfc.hk elliptic.co

Crypto license in Hong Kong: FAQ

Timeline of decisions

1. 9 Jul 2026Decision
   Hong Kong SFC orders crypto platforms, online brokers to phase out OTP logins

   The Block

2. 5 Jun 2026Decision
   Hong Kong taps JPMorgan, HSBC for expert group to scale tokenized bonds

   The Block

3. 26 May 2026Law
   Hong Kong advances virtual asset advisory and management rulemaking

   The Block

4. 1 Aug 2025Law · official
   Stablecoins Ordinance takes effect under HKMA

   Hong Kong's dedicated licensing regime for fiat-referenced stablecoin issuers came into force, requiring HKMA licensing, 100% high-quality liquid reserve backing, and minimum HK$25m capital. It made Hong Kong one of the first major jurisdictions with a purpose-built stablecoin law.

   HKMA

5. 26 Jun 2025Guidance · official
   Policy Statement 2.0 on digital assets launches 'LEAP' framework

   The FSTB issued its second policy statement, introducing the LEAP framework (legal/regulatory streamlining, expanding tokenised products, advancing use cases, people/partnerships) and committing to a unified regime covering exchanges, stablecoin issuers, dealers and custodians, plus regular tokenised government bond issuance.

   HKSAR Government (FSTB)

6. 21 May 2025Law · official
   LegCo passes the Stablecoins Bill

   Hong Kong's Legislative Council enacted the Stablecoins Ordinance, establishing the statutory licensing framework for issuers of specified (currency-referenced) stablecoins overseen by the HKMA. This was the legislative milestone preceding the regime's August 2025 commencement.

   HKMA

7. 19 Feb 2025Guidance · official
   SFC unveils 'ASPIRe' regulatory roadmap

   The SFC published a 12-initiative roadmap across five pillars (Access, Safeguards, Products, Infrastructure, Relationships) to expand licensing to OTC and custody services and deepen Hong Kong's virtual asset market. It set the agenda for the next phase of regulatory build-out.

   SFC

8. 15 Apr 2024Decision
   SFC approves Asia's first spot bitcoin and ether ETFs

   The SFC conditionally approved spot bitcoin and ether ETFs from ChinaAMC, Bosera/HashKey and Harvest, which debuted on the Hong Kong exchange on 30 April. Hong Kong became the first major Asian hub, and globally the first, to list a spot ether ETF.

   CNBC

9. 13 Sept 2023Incident
   JPEX scandal exposes unlicensed-exchange risks

   An unlicensed exchange, JPEX, collapsed amid fraud allegations affecting over 2,000 investors and roughly HK$1.4bn in claimed losses, triggering dozens of arrests. The case tested the new licensing regime and prompted the SFC to publish lists of licensed and suspicious platforms.

   Hong Kong Free Press

10. 3 Aug 2023Decision · official
    First retail trading licences granted to OSL and HashKey

    The SFC upgraded OSL and HashKey Exchange to serve retail investors, the first platforms permitted to offer retail virtual asset trading (initially limited to bitcoin and ether). It marked the practical opening of regulated retail crypto access in Hong Kong.

    SFC

11. 1 Jun 2023Law · official
    SFC virtual asset trading platform (VATP) licensing regime commences

    A mandatory licensing regime for centralised virtual asset trading platforms took effect under the AMLO (Cap. 615) and SFO, requiring any VATP operating in or marketing to Hong Kong to be SFC-licensed and permitting regulated retail access with investor safeguards. It created Hong Kong's core crypto-exchange licensing framework.

    SFC

12. 1 Jun 2023Law · official
    Mandatory VATP licensing regime commences

    The SFC's dual licensing regime for centralised virtual asset trading platforms took effect, requiring any platform operating in or marketing to Hong Kong to be licensed and allowing retail access subject to investor-protection rules. Pre-existing platforms were given transitional deadlines to apply or close.

    SFC

13. 7 Dec 2022Law
    AMLO amendment creates VASP licensing regime

    LegCo passed the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022, making it an offence to operate a virtual asset exchange without an SFC licence. This statutory basis underpinned the June 2023 trading-platform regime.

    Gibson Dunn

14. 31 Oct 2022Guidance · official
    Government issues first Policy Statement on virtual assets

    The FSTB published Hong Kong's foundational policy statement signalling openness to a regulated virtual asset hub under 'same business, same risks, same rules', flagging a VASP licensing regime, a stablecoin framework, possible VA ETFs and tokenised green bonds. It set the strategic direction for the current framework.

    HKSAR Government (FSTB)

15. 1 Nov 2018Guidance · official
    SFC brings virtual asset funds under regulation

    The SFC announced a regulatory framework placing virtual asset portfolio managers and fund distributors under its oversight (professional investors only) and an opt-in approach for trading platforms. This was Hong Kong's first formal step toward regulating crypto-related activity.

    SFC

Sources

1. 1.hkma.gov.hk/eng/key-functions/international-financial-centre/stablecoin-issuers/
2. 2.hkma.gov.hk/eng/news-and-media/press-releases/2026/04/20260410-4/
3. 3.sfc.hk/en/News-and-announcements/Policy-statements-and-announcements/A-S-P-I
4. 4.info.gov.hk/gia/general/202512/24/P2025122400265.htm
5. 5.fstb.gov.hk/en/blog/blog020224.htm
6. 6.aplus.hkicpa.org.hk/ird-issues-guidance-on-cryptocurrency-taxation/
7. 7.sidley.com/en/insights/newsupdates/2026/01/hong-kong-to-further-enhance-licensin
8. 8.coinreporter.io/2026/04/hong-kong-sar-grants-12-new-virtual-asset-trading-licenses-in
9. 9.davispolk.com/insights/client-update/hong-kong-permits-virtual-asset-exchanges-acce
10. 10.kpmg.com/cn/en/home/insights/2020/04/tax-alert-8-hk-taxation-of-digital-assets
11. 11.elliptic.co/blog/crypto-regulatory-affairs-hong-kong-progresses-cryptoasset-regul