Hong Kong Financial Secretary Christopher Hui outlined plans for a new amendment bill that will expand regulatory oversight to four specific crypto services: virtual asset dealing, custody, advisory, and asset management. Hui shared details of the proposal during a Legislative Council financial affairs panel meeting on October 5, 2026, aiming to introduce the draft bill before the end of the year.
The legislative move signals a tactical shift among local regulators. Instead of designing a supervisory framework from scratch, financial authorities are opting to borrow time-tested legal foundations from the conventional capital market.
Traditional Securities Rules for Digital Assets
The proposed licensing regime will follow the blueprint of Hong Kong’s traditional securities regulations. Virtual asset dealing services will fall under the Type 1 licensing framework, advisory practices will follow Type 4, and asset management will adopt Type 9. Regulators are adhering strictly to a core principle: “same business, same risks, same rules” - businesses with identical characteristics that carry similar risks must comply with uniform rules, regardless of whether the instrument is a company share or a token on a blockchain network.
The guideline drafting process has already passed the public consultation stage. The consultation on draft rules for dealing and custody, launched in June 2025, gathered more than 190 responses from industry participants. Meanwhile, draft regulations for advisory and management received 51 written submissions from stakeholders.
Building Digital Oversight Infrastructure
Hong Kong’s plan involves building tangible technical infrastructure, not merely legal documentation. The Securities and Futures Commission (SFC) is preparing to launch CrypTech - a dedicated surveillance system for digital asset custody activities - in the second half of 2026. This supervisory tool will enable regulators to monitor the custody status of client crypto assets held with third-party service providers.
The Hong Kong Monetary Authority (HKMA) also plans to roll out a central bank digital currency (CBDC) settlement platform named EnsembleTX around late 2026. This 24-hour settlement system will support smooth daily financial transactions across their jurisdiction.
The Final Piece of the Regulatory Ecosystem
The four new licensing categories will close regulatory loopholes in Hong Kong’s digital asset ecosystem. Previously, the jurisdiction rolled out VATP licenses for crypto exchanges. Authorities have also implemented a dedicated stablecoin law, the Stablecoins Ordinance, since August 1, 2025, with the first two issuers officially securing operational licenses in April 2026.
The amendment bill covering the four new licensing services remains at the proposal stage and has not yet become law. The regulatory document must pass through all legislative debate stages in the Legislative Council. If the entire process proceeds smoothly, Hong Kong’s next policy roadmap will shift toward regulating trading procedures for licensed stablecoins and formulating dedicated guidelines for tokenized gold instruments.
Reported by crypto.news.
Read also: SEC Overhauls Crypto Custody Rules - Investment Managers Can Now Hold Client Assets Directly
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
