Hong Kong's government will submit a bill to the Legislative Council by the end of 2026 licensing crypto dealing, custody, advisory and management services, Secretary for Financial Services and the Treasury Christopher Hui told lawmakers on October 5, 2026.

Hui confirmed the target at a Legislative Council Finance Committee policy briefing. The proposal, drafted jointly by the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC), would amend the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, known as Cap. 615.

What does the bill actually cover?

Four new licensing regimes would fall under SFC supervision:

• Dealing: Over-the-counter (OTC) trading desks that match large buyers and sellers away from public exchange order books.
• Custody: Firms that hold private keys on behalf of clients.
• Advisory: Businesses that provide investment advice on virtual assets.
• Management: Portfolio management services for digital assets.

Each new category lines up with a corresponding license type under the existing Securities and Futures Ordinance. The FSTB and SFC described the approach as guided by the principle of "same business, same risks, same rules."

Why is the no-transition stance the headline risk?

The draft contains no transitional or grandfathering provisions. Firms that do not already hold licensing from the SFC or the Hong Kong Monetary Authority (HKMA) may be required to cease operations once the new regulations commence. That hard cutover distinguishes the proposal from softer licensing rollouts in other major financial centers.

The dealing and custody consultations drew more than 190 responses, with conclusions published on December 24, 2025. The advisory and management consultations attracted 51 responses, with conclusions released on May 26, 2026.

How does this fit the broader regulatory arc?

Hui positioned the bill as part of a 2026-2030 financial market development strategy and tied it to the government's Policy Statement 2.0 on Digital Assets. Virtual asset trading platform licensing began in 2023, bringing centralized exchanges under SFC oversight. The Stablecoins Ordinance followed, taking effect on August 1, 2025. The new bill extends that framework to four additional service categories.

What is the operational consequence for firms?

The lack of a transition window means OTC desks, custodians, advisers and portfolio managers must either obtain SFC authorization before commencement or wind down Hong Kong operations. Compliance teams will need to map existing activities against the new license types. For cross-border groups, the structure brings Hong Kong into closer alignment with Singapore and the EU's MiCA framework, which already supervise similar activities under their respective securities laws.

The Legislative Council vote and the publication of commencement dates will determine the actual enforcement window. With the end-2026 target now reaffirmed, the industry faces a tight runway to align with the SFC's interpretation of "same risks."