Hong Kong | Crypto

Several leaders in Hong Kong announced efforts to advance the region's regulatory environment.

Hong Kong’s SFC will allow licensed brokers to offer digital asset margin financing and set a framework for crypto perpetuals for professionals. Hong Kong’s Securities and Futures Commission said Wednesday it will allow licensed brokers to provide virtual asset margin financing and outlined a framework for trading platforms to offer perpetual contracts to professional investors. Under the new guidance, brokers may extend virtual asset financing to securities margin clients with sufficient collateral and strong credit profiles. Initially, only Bitcoin (BTC) and Ether (ETH) will be eligible as collateral.  The regulator also set out a high-level framework for licensed virtual asset trading platforms to develop leveraged perpetual contracts. Access will be restricted to professional investors.  Read more

Questions raised after Bithumb intern sent 15X more “phantom” Bitcoin to users than it held. Plus, did a Hong Kong fund blow up? Asia Express

Questions raised after Bithumb intern sent 15X more “phantom” Bitcoin to users than it held. Plus, did a Hong Kong fund blow up? Asia Express

Questions raised after Bithumb intern sent 15X more “phantom” Bitcoin to users than it held. Plus, did a Hong Kong fund blow up? Asia Express

Hong Kong's monetary authority said only a small number of stablecoin issuers will be approved initially, as application reviews near completion. The Hong Kong Monetary Authority (HKMA), Hong Kong's financial regulator, is preparing to grant its first stablecoin issuer licenses in March, according to a Reuters report.  During a Legislative Council meeting on Monday, HKMA Chief Executive Eddie Yue reportedly said the regulator’s review of stablecoin license applications was nearing completion. Yue added that the initial approvals will be limited, with only a “very small number” of licenses expected to be issued in the first batch.  At a subsequent media briefing, the regulator said the assessments were focused on use cases, risk management, anti-money laundering (AML) controls and the quality of backing assets. Licensed issuers are also expected to comply with Hong Kong’s cross-border activity rules.  Read more

An official said that Hong Kong authorities would work on a draft framework, and had begun processing license applications for stablecoin issuers and addressing crypto taxes. Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong, said local financial regulators are planning to submit a draft framework related to digital assets sometime in 2026. In comments prepared for a Friday policy briefing of the Hong Kong Legislative Council's Finance Committee, Hui said the Financial Services and the Treasury Bureau and  Securities and Futures Commission planned to submit a draft ordinance related to regulations for providers offering crypto advisory services. He added that the two regulators were consulting the public after releasing a digital asset consultation paper in December.   In addition, Hui said that the Hong Kong Monetary Authority (HKMA) had begun processing license applications for stablecoin issuers and would address reporting digital assets on taxes.  Read more

Hong Kong will issue stablecoin licenses this quarter. Two men allegedly linked to the 2018 BitConnect kidnappings arrested. Asia Express

Hong Kong will issue stablecoin licenses this quarter. Two men allegedly linked to the 2018 BitConnect kidnappings arrested. Asia Express

Hong Kong will issue stablecoin licenses this quarter. Two men allegedly linked to the 2018 BitConnect kidnappings arrested. Asia Express

Speaking at a closed-door workshop in Davos, Finance Secretary Paul Chan said digital assets require regulatory guardrails alongside innovation. Hong Kong Finance Secretary Paul Chan defended the city’s “same activity, same risk, same regulation” framework for digital assets while speaking at the World Economic Forum in Davos, according to the South China Morning Post. Speaking at a closed-door workshop in Switzerland on Tuesday, Chan said finance and technology were increasingly intertwined but required a balanced regulatory approach. He said: Chan pointed to the city’s “same activity, same risk, same regulation” principle for digital assets, which he said guides how the sector is regulated. The principle means digital asset businesses are regulated according to the risks of their activities rather than the technology they use. Read more

The warning came as Hong Kong consults on new virtual asset advisory and management licenses, expanding oversight beyond crypto trading platforms. The Hong Kong Securities & Futures Professionals Association (HKSFPA) warned that the city’s proposed rollout of new crypto licensing regimes may unintentionally force compliant crypto managers to cease activities if regulators proceed without transitional arrangements.  The warning centers on what the group described as a potential “hard start,” under which existing firms would be required to be fully licensed by the commencement date of the new rules or cease regulated activities while their applications are under review.  Hong Kong’s Securities and Futures Commission and the Financial Services and the Treasury Bureau are currently consulting on new licensing regimes that cover virtual asset dealing, advisory and management services, which would expand regulatory oversight beyond the city’s existing framework for crypto trading platforms.  Read more

The Hong Kong Securities & Futures Professionals Association is backing the OECD’s CARF and tougher tax transparency, but wants lighter treatment and more flexible recordkeeping. The Hong Kong Securities & Futures Professionals Association (HKSFPA) has urged the city’s government to soften some elements of its planned implementation of the Organisation for Economic Co-operation and Development’s (OECD) crypto reporting standards. The industry body warned that the OECD’s Crypto Asset Reporting Framework (CARF) and related Common Reporting Standard (CRS) amendments could saddle local institutions with operational and liability risks. CARF is a new standard for automatic tax information exchange for crypto asset users across borders, while CRS is the OECD’s existing automatic information exchange regime for traditional financial accounts. Read more

OKX user issues desperate plea after funds frozen. Hong Kong hasn’t ruled out gold-backed stablecoins, but says it’s too early. Asia Express. An OKX user trying to get around restrictions on Chinese users has become desperate after the crypto exchange froze funds saying the money was needed to cover urgent family medical expenses. The user, who shared a lengthy personal appeal on X, said about $40,000 in crypto became inaccessible after OKXs risk controls locked multiple accounts linked to identity violations. The user admitted the accounts were acquired from third parties to access promotions that were unavailable to mainland China users. In the post, the user said all funds transferred into them originated from their verified personal account. They described the funds as life-saving money needed for a family members surgery. Read more

OKX user issues desperate plea after funds frozen. Hong Kong hasn’t ruled out gold-backed stablecoins, but says it’s too early. Asia Express.

Hong Kong’s FSTB and SFC will introduce licensing requirements for virtual asset dealing and custody firms, expanding the city’s policy push that already includes a stablecoin licensing blueprint and tokenization guidance. Hong Kong regulators will proceed with legislating licensing regimes for crypto dealers and custodians after wrapping up consultations, as part of a broader push to tighten oversight. In a Wednesday announcement, the city’s Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) said that they had concluded consultations on proposed licensing regimes, which would require firms providing crypto dealings or custody services in Hong Kong to obtain licenses once the framework takes effect. The move adds to the city’s expanding crypto licensing framework. Earlier in 2025, Hong Kong brought its Stablecoin Ordinance into force, opening a new licensing regime for stablecoin issuers. Read more

Hong Kong’s insurance regulator is reportedly weighing a proposal to let insurers invest in cryptocurrencies with a 100% capital charge. The Hong Kong Insurance Authority is reportedly proposing to allow insurance capital allocation to cryptocurrencies and infrastructure projects. Bloomberg reported on Monday that the city’s regulator started reviewing the risk-based capital regime to support the insurance industry and economic development. Crypto allocations would be subject to a 100% risk charge, meaning that the insurer would need regulatory capital roughly equal to the full value of its crypto position. Read more

HashKey’s IPO bid puts Hong Kong’s virtual asset regime on display, testing whether compliance-first crypto platforms can win investors. HashKey is aiming to become Hong Kong’s first fully crypto-native IPO by listing 240.57 million shares under the city’s virtual asset regulatory regime. The business extends beyond a spot exchange by combining trading, custody, institutional staking, asset management and tokenization into a single regulated platform. Revenue is growing, but the company is still incurring losses as it invests heavily in technology, compliance and market expansion. Read more

Hong Kong has launched a public consultation on adopting the OECD’s crypto account tax data sharing program, CARF, and revising its tax reporting standards. Hong Kong has launched a public consultation on how to implement the international Crypto-Asset Reporting Framework, or CARF, as it moves to bring crypto tax data sharing in line with global standards. According to a Tuesday news release, Hong Kong is seeking input on both the implementation of CARF and changes to tax reporting standards. The announcement explicitly ties the move to the local administration’s efforts to fight cross-border tax evasion. The move constitutes standardization rather than a change of direction by the local government. As the announcement points out, Hong Kong authorities have been annually exchanging financial account information with partner jurisdictions since 2018. Read more

HKEX published a post-hearing information pack for HashKey Holdings, pushing Hong Kong’s top crypto exchange closer to a high-profile IPO. HashKey Holdings, the parent company of one of Hong Kong’s biggest licensed crypto exchanges, moved a step closer to a public listing, according to new filings from the Hong Kong Stock Exchange (HKEX). On Monday, the HKEX published a 633-page post-hearing information pack for HashKey Holdings. The document was published at the request of The Stock Exchange of Hong Kong Limited and the local financial regulator, the Securities and Futures Commission (SFC). A post-hearing information pack is only published after HKEX’s listing committee formally clears an applicant at the listing hearing. In other words, without explicitly stating it, this document indicates that HashKey has moved closer to listing on the exchange and is progressing toward its initial public offering (IPO). Read more