Crypto License in Hong Kong
Last Update: 18.03.2026
Hong Kong is widely regarded as one of the most attractive jurisdictions for cryptocurrency transactions due to its modern and adaptive regulatory framework.Additionally, Hong Kong’s developed economy, infrastructure, and technology offer further advantages in this area. Gofaizen & Sherle stands ready to assist with registration of crypto businesses and the acquisition of crypto licenses in Hong Kong.
According to the latest global cryptocurrency readiness report, Hong Kong ranked first as the most “cryptocurrency-ready” country in 2022, outperforming other countries across all indicators. This includes the number of blockchain startups per 100,000 people and the number of cryptocurrencies relative to the population. This is particularly notable given that Hong Kong outperformed countries such as the United States and Switzerland in this ranking.
To become a global cryptocurrency hub, Hong Kong has taken certain steps to regulate the industry:
Since early 2018, the Hong Kong government has expressed its support for blockchain technology, and over the past three years, the Innovation and Technology Fund (ITF) has provided funding for 18 projects related to blockchain and distributed ledger technology, totaling approximately US$67.2 million.
In 2019, the Securities and Futures Commission (SFC) issued guidelines for security token offerings (STOs) and virtual asset trading platforms (VATPs) to ensure compliance with existing regulations. In the same year, the SFC introduced a regulatory framework for cryptocurrency exchanges.
The Hong Kong blockchain community also collaborates with the government, academia, and industry to promote the legalization of blockchain through education, research, and other activities and services in Hong Kong and its surrounding areas. The Hong Kong Monetary Authority (HKMA) is exploring the use of blockchain technology in its financial system. For example, in May 2023, the HKMA launched the e-HKD pilot program, in which 16 companies were selected to explore the use of digital currency in 14 projects.
It is also worth noting that Hong Kong is home to several prominent cryptocurrency exchanges, including BitMEX, OKEx, and Bitfinex.
Advantages of obtaining a cryptocurrency license in Hong Kong
Regulatory structure.
Hong Kong has established a clear regulatory structure for cryptocurrency-related activities.
Business-friendly environment.
Hong Kong is known for its business-friendly environment and robust legal system. Setting up a business related to cryptocurrency is relatively easy, with well-defined procedures and effective support from the government. There is also no capital gains tax on cryptocurrencies in Hong Kong.
Access to capital.
Hong Kong is a global financial center with a diverse range of investors and venture capitalists. Getting a cryptocurrency license in Hong Kong provides access to a huge number of potential investors and funding opportunities, allowing businesses to secure the capital they need to grow and develop.
Reputation and credibility.
Obtaining a cryptocurrency license in Hong Kong increases the credibility and trustworthiness of a business, which can attract institutional investors and partnerships. A strong regulatory structure and adherence to international standards contribute to Hong Kong’s reputation in the global cryptocurrency community.
Ecosystem support.
Hong Kong has a vibrant cryptocurrency community, with many startups, industry events, and networking opportunities. Associations and incubators specializing in the blockchain industry complement the ecosystem, fostering collaboration and innovation.
International access to markets.
Hong Kong is a gateway to both Asian and global markets. With established relationships, ease of doing business, and robust infrastructure, companies with a cryptocurrency license in Hong Kong can expand beyond the local market and attract an international customer base.
These advantages combine to make Hong Kong an attractive destination for businesses looking to operate in the cryptocurrency industry and take advantage of the opportunities on offer.
Cryptocurrency regulation in Hong Kong
The main organizations regulating the cryptocurrency business in Hong Kong are the Hong Kong Monetary Authority and the Securities and Futures Commission.
The Hong Kong Monetary Authority regulates the activities of virtual asset service providers (VASPs) and pays particular attention to mitigating the risks associated with money laundering and terrorist financing. It requires VASPs to adopt effective measures to combat money laundering and terrorist financing, conduct comprehensive customer due diligence, and maintain proper record-keeping procedures.
The Securities and Futures Commission plays an important role in regulating cryptocurrency exchanges and trading platforms operating in Hong Kong. It ensures that these platforms are licensed and comply with strict rules on transaction security, customer protection, and anti-money laundering (AML).
Legislative framework
The regulation of cryptocurrency activities in Hong Kong is based on two key laws and a number of regulatory guidelines developed by the SFC.
The main rules and guidelines applicable to cryptocurrency activities in Hong Kong include:
- Securities and Futures Ordinance (SFO, Chapter 571).
This is the primary piece of legislation governing activities related to securities, derivatives, and other financial products. It applies to virtual assets where they are recognized as “securities” or “futures contracts.” For example, security tokens fall under the SFO, and their issuance, sale, or distribution requires an appropriate license. The law also applies to the activities of platforms trading in virtual assets if they offer trading in tokens that fall within the definition of regulated instruments.
- Anti-Money Laundering and Countering the Financing of Terrorism Act (2022 amendment, Chapter 615).
This law establishes requirements for anti-money laundering (AML) and counter-terrorist financing (CFT) procedures. The 2022 amendment adapted it to the FATF requirements (Recommendation 15), extending the scope of the law to virtual asset service providers (VASPs). From June 1, 2023, the new licensing regime requires crypto companies to comply with strict customer identification (KYC) procedures, risk management, internal controls, and reporting requirements.
- Guidelines for Virtual Asset Trading Platform Operators (VATP Guidelines).
The SFC guidelines specify how licensed cryptocurrency platforms should operate. They contain requirements for corporate governance, customer protection, asset management, cybersecurity, token admission, and compliance with AML/CFT measures. Platforms are required to obtain a license, implement the necessary internal control systems, and undergo an external assessment. From January 2025, a simplified assessment procedure will apply — instead of a two-stage procedure, a single report will be submitted once the platform is fully operational.
- Additional SFC guidance and position papers:
- ICO guidance — defines when tokens offered in an ICO qualify as securities.
- Security Token Offerings (STO) Guidance, 2019 — clarifies the obligations of STO organizers about compliance with licensing and regulatory requirements.
- Code of Conduct for Licensed Persons — regulates the conduct of market participants distributing tokenized financial instruments.
On the SFC website, you will find all the regulatory requirements for operators of virtual asset trading platforms.
Licensing and registration
Since March 1, 2023, Hong Kong has had a licensing system for virtual asset service providers (VASPs) regulated by the SFC.
In this jurisdiction, a crypto license (VASP license) is a permit issued by the SFC to organizations that provide services related to virtual assets. It allows them to legally conduct crypto activities in Hong Kong and serve customers, including through virtual asset trading platforms (VATP).
Who needs a license:
- Companies that manage crypto exchanges or other platforms that work with digital assets.
- legal entities that provide crypto services to Hong Kong citizens and residents;
- foreign companies registered in Hong Kong and conducting operations there.
To obtain a license, the applicant must demonstrate:
A registered corporate structure — only legal entities are eligible to apply.
- financial stability — funds covering at least 12 months of operating expenses;
- effective risk management — implementation of automated trading and surveillance systems;
- compliance with international AML/CFT standards — the existence of anti-money laundering and counter-terrorist financing policies;
- reliable storage of client assets — including insurance coverage;
- working only with professional investors (in the first phase).
Since January 2025, the licensing process for VATPs has been streamlined. The main change is the replacement of the previous two-stage external assessment with a single assessment, which is conducted after the implementation of all internal policies and systems. The assessment is conducted by an independent audit firm approved by the SFC and formalized in a tripartite agreement between the applicant, the external assessor, and the SFC. The document is prepared by HKSAE 3000 or a similar international standard (e.g., ISAE 3000). This system makes the licensing process more centralized and transparent, shifting the focus to a company’s actual readiness to comply with regulations rather than planned measures.
Obtaining a crypto license in Hong Kong is a mandatory and strictly regulated process aimed at legalizing and standardizing crypto activities. Hong Kong authorities adhere to high standards of transparency, cybersecurity, and financial discipline. The new approach to licensing makes the process more understandable and efficient for those who intend to conduct a sustainable crypto business in one of Asia’s key financial centers.
Register of crypto companies
Hong Kong has a public register of cryptocurrency companies maintained by the SFC. This register is the primary source of information on the current regulatory status of virtual asset trading platform (VATP) operators and serves as a transparency tool for investors, customers, and other market participants.
The register includes several categories:
- Licensed crypto companies that have completed the licensing process.
- Applicants currently under review.
- Companies that have been refused or have withdrawn their application.
- Unlicensed operators whose activities are deemed to violate the law.
Detailed information is available for each company listed in the register:
- type of crypto license issued — under the Securities and Futures Ordinance (SFO) and/or the Anti-Money Laundering Ordinance (AMLO);
- date of license issuance, head office address, and contact details;
- information about responsible officers and key management personnel;
- history of violations and sanctions, if any.
This makes the register not only an administrative tool, but also an effective means of public control and monitoring of the crypto services market in Hong Kong.
The process of adding a company to the register begins with the submission of an application for a crypto license. Once the application is submitted, the crypto project becomes visible in the public section of the register. After the review is complete, it is either transferred to the licensee category or displayed as a rejected or withdrawn application.
Requirements for obtaining a crypto license in Hong Kong
Since June 1, 2023, mandatory licensing of cryptocurrency platforms and virtual asset service providers (VASPs) has been in effect in Hong Kong. Obtaining a license requires compliance with several regulatory and organizational criteria:
Company registration in Hong Kong
Only a company registered in Hong Kong or a foreign company officially listed in the register can apply. Sole proprietors and unincorporated legal entities cannot obtain a license.
Minimum authorized capital
To obtain a license, a company must have paid-up authorized capital of at least HK$5,000,000 (approximately US$636,948). The capital must remain untouched until the license is officially granted.
Office in Hong Kong
The company must have a physical office in Hong Kong that is suitable for storing documents and conducting business.
Appointment of licensed representatives
At least two licensed representatives approved by the SFC must be appointed. One of them must be an executive director of the company, and at least one must be a permanent resident of Hong Kong.
Responsible officers
Responsible officers are required to ensure compliance with all regulatory requirements, including anti-money laundering and counter-terrorist financing (AML/CTF) measures. All executive directors of VASPs must also be appointed as responsible officers.
Professional suitability check
All key participants in the company — directors, beneficiaries, representatives, and responsible officers — undergo an SFC check for integrity, qualifications, criminal record, and compliance with requirements.
Development of AML/CTF policies and procedures
The company is required to implement internal risk management procedures, including AML/CTF, cybersecurity, business continuity, and a crisis recovery plan.
Detailed business plan
When applying, you must submit a 3-5 year strategic development plan with financial projections and operational scenarios.
Appointment of an IT manager
To ensure technical stability, the VASP must appoint a qualified information technology manager.
Internal audit
The company must establish an internal audit function to ensure ongoing compliance with both internal policies and external regulatory obligations.
Data protection
The company must ensure that customer information and transaction data are securely stored on an SFC-approved platform, with full auditability.
The process of obtaining a crypto license in Hong Kong
In 2025, Hong Kong remains one of the key jurisdictions for launching a cryptocurrency business, offering stable regulation, an international reputation, and access to financial markets.
Since January 2025, an updated licensing procedure for virtual asset trading platform operators (VATP) introduced by the SFC has been in effect. Below are the key steps for obtaining a crypto license, taking into account the current requirements:
Step 1: Company preparation and registration.
The future licensee must register a legal entity in Hong Kong — this can only be a local limited liability company. A minimum share capital of HKD 5 million, office space, and the appointment of a local director are required. The ownership structure is also formalized, a corporate secretary is appointed, and the company’s contact details are approved.
Step 2: Appointment of key persons.
The company must appoint at least two licensed representatives (one of whom must be a Hong Kong resident and executive director), as well as responsible officers who will be responsible for compliance with legislation and internal control. All candidates undergo a thorough SFC check: their business reputation, criminal record, professional experience, and suitability for the position are analyzed.
Step 3: Policy development and preparation of a document package.
The document package required to obtain a VATP (VASP) license in Hong Kong includes:
- AML/KYC procedures;
- internal cybersecurity and risk management policies;
- documents on the premises for storing documents;
- business plan;
- proof of financial solvency;
- organizational structure;
- board of directors’ approval to apply.
From 2025, it will also be necessary to appoint an external assessor and provide documentary evidence of their willingness to assess the applicant.
Step 4: Applying for a crypto license.
The application is submitted to the SFC via the WINGS online platform. Copies of all policies, information about the external assessor, and confirmation of their qualifications are accepted. The SFC conducts a comprehensive assessment of both the company’s structure and the professional qualities of all key participants. If significant deficiencies are identified (e.g., an unconvincing choice of external assessor or gaps in the documentation), the application may be returned for revision.
Step 5: Approval of premises and deployment of systems.
Once the application has been approved, the applicant is required to deploy the systems specified in the business plan, including IT infrastructure, customer data protection measures, and asset management protocols. Approval of the office space where records, documents, and customer information will be stored must also be confirmed.
Step 6: Obtaining a license and subsequent regulation.
Once all formalities have been completed and all systems have been implemented, the SFC issues a crypto license.
Taking into account all stages and current SFC requirements, the total time required to obtain a crypto license in Hong Kong in 2026 is between 5 and 9 months, depending on the quality of preparation and transparency of the structure. The simplified procedure effective as of January 2025 has streamlined regulatory requirements while enhancing oversight of external auditors and documentation quality.
Types of cryptocurrency license in Hong Kong
In 2025, Hong Kong has a two-tier licensing system for cryptocurrency activities, formed around the Securities and Futures Commission and the AMLO (Anti-Money Laundering Ordinance) regime — legislation to combat money laundering. This system regulates the activities of crypto exchange operators, fund managers, consultants, and custodians.
Prior to the introduction of specialized regulation of the cryptocurrency industry, activities involving virtual assets in Hong Kong were regulated through the existing SFC licensing system. In 2025, these licenses will apply if the activity involves tokens that are equivalent to securities (e.g., security tokens).
The most popular types of SFC licenses are:
- Type 1 — securities trading (including security tokens);
- Type 4 — securities advice;
- Type 7 — automated trading services;
- Type 9 — asset management (including crypto funds).
These licenses ensure compliance with applicable securities laws, investor protection, and proper market conduct.
On June 1, 2023, a new AMLO regime came into force, introduced by amendments to the AML/CFT legislation. It introduced a separate VASP (Virtual Asset Service Provider) license for companies doing business with cryptocurrencies, including trading platforms (VATP).
The AMLO regime applies to crypto exchanges and other companies providing virtual asset exchange/trading services (regardless of whether the tokens are securities). This applies to:
- Cryptocurrency exchanges (including platforms with P2P functions);
- Companies providing customers with access to the purchase/sale of virtual assets.
- Companies holding customer funds (directly or indirectly).
Thus, platforms offering trading in both security tokens and non-security tokens must obtain licenses under both the AMLO (VASP) regime and the SFO regime to cover all their activities.Since July 2025, the SFC and FSTB have begun consultations on new licensing regimes covering two new areas: trading on behalf of clients or placing orders and storing cryptocurrencies on behalf of clients.Under this, it is expected that:
- Asset managers dealing with cryptocurrencies will need to have an additional dealing license, even if they already have a Type 9 license.
- Companies storing cryptocurrencies will need to obtain a separate license for custodial services.
Based on current consultations, it can be expected that two new types of licenses will be officially introduced in 2026, as well as restrictions on the use of unregulated offshore structures. This will mean that even fund managers who previously operated through offshore structures will be required to obtain licenses in Hong Kong, and the use of only locally licensed custodians will become mandatory.
Request more information about Hong Kong’s Crypto Licensing
Overview of cryptocurrency regulation in Hong Kong
| Project timeline | up to 1 year |
|---|---|
| State fee for filing an application | 10,000 US dollars |
| Required share capital | from 640,000 to 1 million US dollars |
| Corporate income tax | Tax of 8.25% on the first $2 million of profits and 16.5% on subsequent profits. A tax rate of 0% may apply to profits earned outside Hong Kong. |
| Annual supervision fee | – |
| Local employee | Anti-money laundering officer, 2 directors |
| Physical office | Required |
| Accounting audit | Required |
| Sustainability | Sustainable |
| Bank account options | European EMI |
Registering a crypto company in Hong Kong
To start legal activities in the field of virtual assets, you must go through the process of registering a company in this jurisdiction, which includes several key stages:
Step 1: Planning and determining the type of activity.
Before registration, it is important to clearly determine whether the intended activity falls under SFC regulation. Illegal work with digital assets may result in fines or criminal liability, so at this stage, it is necessary to analyze whether a VATP license is required.
Step 2: Selection and verification of the company name.
The company must have a unique name. The check can be done online through the Hong Kong Registration Chamber service. The name must comply with corporate standards and not duplicate existing companies.
Step 3: Registration of a legal entity.
The most common form of registration is Private Company Limited by Shares.
Registration requires:
- Notarized passports of directors and shareholders with translation.
- information about beneficiaries;
- appointment of at least one director and one shareholder (individual or legal entity);
- appointment of a Hong Kong resident secretary;
- a legal address in Hong Kong;
- articles of association and constituent documents.
For companies planning to conduct crypto activities, the minimum authorized capital is at least HK$5,000,000 (approximately US$636,948).
Step 4: Opening a bank account.
Opening an account with a bank or payment system may require additional checks, especially for crypto companies. You will need to provide incorporation documents, information about beneficiaries, a description of your business model, and your compliance system.
Step 5: Registration with tax authorities.
After registration, the company receives a taxpayer identification number (TIN) from the Internal Revenue Department (IRD) and becomes obligated to file annual financial statements.
Once company registration is complete, the licensing process may commence.
Cryptocurrency taxation in Hong Kong
Hong Kong offers attractive tax conditions for cryptocurrency businesses thanks to its transparent system and territorial principle of taxation. This makes the jurisdiction particularly popular among blockchain and fintech companies.
In Hong Kong, income tax is only levied on income earned within the jurisdiction. If a company does not do business with Hong Kong counterparties and does not have a local bank account, it may be completely exempt from taxation.
There is a two-tier income tax rate for legal entities:
- 8.25% on profits up to HKD 250,000 (approximately USD 32,000),
- 16.5% on amounts exceeding this threshold.
There is no VAT in Hong Kong, and dividend tax is also zero. However, real estate transactions are subject to a 15% tax.
In Hong Kong, Bitcoin and other cryptocurrencies are classified as virtual commodities rather than legal tender. Therefore:
- Investors buying and selling cryptocurrencies as assets do not pay capital gains tax.
- Companies and individuals engaging in regular cryptocurrency trading are subject to income tax of up to 16.5%, as such activity is deemed commercial in nature.
Income from mining is also taxable if it is commensurate with commercial profits.
If a company conducts an ICO, the funds received are considered income and are taxable, especially if the tokens give investors rights or benefits comparable to shares, futures, or service contracts.
Obligations for conducting crypto business in Hong Kong
Conducting cryptocurrency business in Hong Kong requires strict compliance with anti-money laundering requirements and ongoing interaction with the Securities and Futures Commission.
Licensed VASPs are required to maintain financial stability, manage client assets, ensure transparency of operations, and avoid conflicts of interest. They are only permitted to work with professional investors, and any changes in ownership structure, including the emergence of a new ultimate owner, require regulatory approval. In addition, companies are required to file annual reports, appoint an auditor, and pay license fees on time.
Violations can result not only in heavy fines, but also in criminal liability for both the company itself and its employees.
Responsibility for non-compliance
In Hong Kong, violations of cryptocurrency licensing requirements are strictly punishable by both administrative and criminal penalties.
The main types of violations include:
- Operating without a VASP license.
If a person or company provides services related to virtual assets without the appropriate license, it is considered a criminal offense. Penalties may include a fine of up to HK$5 million (approximately US$636,948) and imprisonment for up to 7 years, as well as a daily fine of HK$100,000 (approximately US$1,274) for each day the violation continues.
- Violations by licensed VASPs.
If a licensed virtual asset service provider or its responsible officers fail to comply with the AML/CFT requirements, they face a fine of up to HK$1 million (approximately US$127,390) and up to 2 years’ imprisonment. Disciplinary measures may also be imposed, including a reprimand, revocation or suspension of the license, an order to take corrective action, and an additional fine.
- Fraudulent or reckless inducement to invest.
Misleading investors when selling or purchasing virtual assets is punishable by a fine of up to HK$1 million (approximately US$127,390) and up to 7 years’ imprisonment, even if the transaction is conducted through a licensed platform.
- Use of fraudulent schemes in virtual asset transactions.
If a person uses deceptive methods, tricks, or schemes in crypto asset transactions, it is also considered a crime. Penalties include a fine of up to HK$10 million (approximately US$1,273,896) and up to 10 years in prison.
- Illegal advertising of cryptocurrency services.
An unlicensed person is not entitled to advertise the provision of cryptocurrency services. Such a violation is punishable by a fine of up to HK$50,000 (approximately US$6,369) and up to six months’ imprisonment.
Thus, Hong Kong’s regulatory system provides for strict liability for any violation of the rules related to the licensing of the crypto sphere.
Conclusion
Obtaining a crypto license in Hong Kong is an important and responsible step for the successful development of a crypto business. Gofaizen & Sherle has experience and expertise in obtaining crypto licenses and supporting businesses in a complex and evolving legal environment. We are ready to provide comprehensive support at all stages of the licensing process, helping clients navigate the nuances of local regulations and build their business in compliance with all legal requirements.
By partnering with Gofaizen & Sherle, you gain a trusted advisor to guide you through every stage — from document preparation to the successful acquisition of a VATP (VASP) license — enabling you to focus on scaling your crypto business in a strategic jurisdiction.
FAQs about obtaining a crypto license in Hong Kong
Is cryptocurrency regulated in Hong Kong?
Yes, cryptocurrency is regulated in Hong Kong by the Anti-Money Laundering and Countering the Financing of Terrorism Ordinance (as amended in 2022). The Securities and Futures Ordinance (SFO) and other regulations govern securities, futures contracts, and prepaid items.
Can I trade cryptocurrency in Hong Kong?
Yes, trading cryptocurrency is permitted in Hong Kong. There are cryptocurrency exchanges and platforms that allow users to buy, sell, and exchange various cryptocurrencies.
What is a crypto license in Hong Kong?
It is an official permit required to conduct certain activities related to digital assets and virtual currencies. It confirms that the company complies with local laws and regulatory requirements.
What types of activities require licensing?
A license is required for activities related to cryptocurrency trading, providing crypto exchange services, storing digital assets, and other financial services using virtual currencies.
Who regulates the crypto business in Hong Kong?
The main regulator is the Hong Kong Securities and Futures Commission (SFC), which oversees compliance with crypto asset requirements.
What are the requirements for obtaining a crypto license?
The applicant must demonstrate business transparency, have robust risk management mechanisms in place, ensure customer protection, and comply with the financial and operational standards set by the regulator.
What are the timeframes and costs for obtaining a license?
The application process usually takes between 6 and 9 months. Government fees depend on the structure of the company and the range of services provided. In addition, regular expenses for legal support, auditing, and internal control should be taken into account, which can be significant.
Is Hong Kong a crypto-friendly jurisdiction?
Hong Kong is actively developing its regulatory framework and supporting crypto businesses, creating a favorable environment for innovation and industry growth while maintaining risk control.
Who can engage in cryptocurrency activities?
Crypto businesses can be operated by companies that have been licensed and meet the risk management and customer protection criteria set by the regulator.
Do you have to pay taxes on cryptocurrencies in Hong Kong?
Taxation depends on the nature of the transactions and the status of the company, but cryptocurrency income is subject to taxation by applicable law.
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