Hong Kong is trying to build up its crypto regulations: State of Crypto
Summary
Hong Kong leaders have unveiled initiatives aimed at enhancing the region's regulatory framework, signaling a commitment to fostering a more robust business environment. This move is expected to attract investment and stimulate economic growth in the area.
Key Insights
What specific initiatives is Hong Kong implementing to strengthen its crypto regulations?
Hong Kong plans to issue cryptocurrency licenses starting in March 2026, with the Hong Kong Monetary Authority reviewing 36 applications focusing on stablecoin oversight, anti-money laundering, and financial stability. Regulators will submit a draft ordinance in 2026 to govern crypto advisory services, and the Securities and Futures Commission is advancing frameworks for cryptoasset dealers and custodians consistent with securities regulations.
How does Hong Kong's crypto regulatory approach differ from mainland China?
Unlike mainland China's ongoing ban on crypto activities, Hong Kong is actively issuing licenses for cryptocurrency operations starting March 2026 and developing regulations for stablecoins, advisory services, dealers, and custodians to balance innovation with risk management.
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