Hong Kong government reaffirms end-2026 deadline for crypto licensing bill

Key Takeaways

• Hong Kong government to license 4 crypto businesses by end-2026.
• The bill will be supervised by the Securities and Futures Commission.
• The four licensing regimes will extend oversight into areas outside the city's main crypto framework.

Market & Token Impact

• The licensing of these businesses will likely have a positive impact on the Hong Kong crypto market, as it will provide a clearer regulatory framework for investors and businesses.
• The bill's inclusion of dealing, custody, advisory, and management categories will also help to address concerns around the lack of oversight in these areas.

Broader Context & What's Next

• The proposal is part of a broader 2026-2030 financial market development strategy.
• The government's Policy Statement 2.0 on Digital Assets also supports the proposal.
• The lack of transitional or grandfathering provisions in the bill may pose a risk to businesses that do not already hold licensing from the SFC or the Hong Kong Monetary Authority.
• The consultations on the dealing and custody regimes drew over 190 responses, while the advisory and management consultations attracted 51 responses.
• The bill is expected to be sent to the Legislative Council by the end of 2026, with the new regulations likely to commence shortly after.