The Hong Kong government is set to introduce a bill by the end of 2026 that may establish licensing requirements for four key types of virtual asset businesses: dealing, custody, advisory, and management. This initiative represents a significant expansion of the city’s regulatory oversight for the digital asset sector.
Secretary for Financial Services and the Treasury Christopher Hui reported the end-2026 target for submitting the bill to the Legislative Council on October 5, 2026. The proposed legislation is a joint effort by the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC), with the SFC designated as the primary supervisory authority for these new licensing regimes.
The new framework aims to regulate virtual asset dealing, custody, advisory, and management services under the guiding principle of “same business, same risks, same rules.” This approach mirrors the existing Securities and Futures Ordinance, ensuring that each new virtual asset license category aligns with a corresponding type under the established ordinance.
This move is part of Hong Kong’s broader 2026-2030 financial market development strategy and aligns with the government’s Policy Statement 2.0 on Digital Assets. Public consultations on the proposed regimes have already been conducted. Conclusions from consultations concerning dealing and custody services, which garnered over 190 responses, were published on December 24, 2025. Separately, conclusions from consultations on advisory and management services were released on May 26, 2026, following 51 responses.
A critical aspect of the proposal is the absence of transitional or grandfathering provisions. Consequently, businesses currently operating in these four virtual asset sectors that do not already possess licenses from the SFC or the Hong Kong Monetary Authority (HKMA) may be required to cease operations once the new regulations come into effect.
This planned legislation builds on Hong Kong’s recent regulatory actions in the virtual asset space. The licensing of virtual asset trading platforms commenced in 2023, bringing centralized exchanges under SFC supervision. The Stablecoins Ordinance also took effect on August 1, 2025. The forthcoming bill extends this regulatory reach to over-the-counter (OTC) desks, custodians, advisers, and managers, encompassing areas that have previously operated outside the city’s primary crypto regulatory framework.
The SFC will oversee the implementation and enforcement of the four licensing regimes, ensuring compliance with the evolving virtual asset regulations.
Why This Matters
The materials describe a narrow update: The Hong Kong government plans to submit a bill to the Legislative Council by the end of 2026 to license four types of virtual asset businesses: dealing, custody, advisory, and management. The bill extends oversight into areas that have so far sat outside the city’s main crypto framework.
Broader Context
Source materials place the factual news in this context: The guiding philosophy is “same business, same risks, same rules.”.
