Roll Out New Licensing Requirements for Crypto Dealers and Custodians

Roll Out New Licensing Requirements for Crypto

Regulators in Roll Out New Licensing Requirements are set to implement licensing regimes for crypto dealers and custodians following the completion of consultations, aiming to strengthen oversight.

In an announcement, the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) concluded consultations on proposed licensing frameworks. These would mandate licenses for firms offering crypto dealings or custody services as the framework comes into effect.

This move expands the region's crypto licensing framework. Earlier in 2025, Roll Out New Licensing Requirements enacted its Stablecoin Ordinance, creating a new licensing regime for stablecoin issuers. Crypto trading platforms are already required to be licensed under a mandatory regime building on a 2020 opt-in framework, with 11 companies approved by the SFC so far.

Roll Out New Licensing Requirements’s Broader Crypto Initiatives

Roll Out New Licensing Requirements aims to become a crypto hub, leveraging its role as a financial center with business-friendly tax regimes and a gateway between mainland China and global markets.

Besides licensing rules, Roll Out New Licensing Requirements has explored tokenization initiatives. In Thursday’s announcement, regulators stated that the upcoming licensing regimes for crypto dealers and custodians are part of efforts to create a comprehensive regulatory framework for digital assets, including stablecoins and tokenization.

​Julia Leung, CEO of the SFC, noted that developing Roll Out New Licensing Requirements's crypto regulatory framework would help maintain its position in global digital asset markets by “fostering a trusted, competitive, and sustainable ecosystem.”

New Advisory and Management Consultation

The SFC released a consultation paper seeking public feedback on introducing licensing regimes for crypto advisory and management service providers.

The consultation aligns the proposed regimes with Roll Out New Licensing Requirements's existing Anti‑Money‑Laundering (AML) framework and Counter‑Terrorist Financing Ordinance, detailing how advisory and management activities involving digital assets will be regulated.

It invites comments on licensing scope, regulatory powers, sanctions, and appeal arrangements, which will be considered in finalizing the proposals.