Company Registration
1 Week
Local Director?
No
Bank Account Opening
4 Weeks
Travel Required?
No
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Table Of Contents
Hong Kong Cryptocurrency License in 2026
- Tetra Consultants can assist you to attain a Hong Kong Cryptocurrency License with the Securities and Futures Commission (SFC), including licensing for Virtual Asset Trading Platforms (VATPs). Our lawyers, legal experts, and compliance professionals will lead you through the process of company registration in Hong Kong, opening the door to access one of the world’s best and most crypto-friendly markets.
- The sophisticated legal system, infrastructure, and forward-thinking 2026 regulations of Hong Kong governing Virtual Asset Trading Platforms (VATPs) are propelling the rapid expansion of cryptocurrency transactions and blockchain development, cementing its position as a leading Asian hub.
- The continued support of the government through the Innovation and Technology Fund (ITF), SFC virtual asset regulations, and the HKMA’s fully functional e-HKD make for a dynamic and well-regulated environment that is perfect for cryptocurrency license businesses.
- In 2026, the cryptocurrency licensing system in Hong Kong will have only two major regulatory bodies. They include the Securities and Futures Commission (SFC), which regulates the trading of virtual asset trading platforms (VATPs), security tokens, and other related activities under a dual-track system. It will also have the Hong Kong Monetary Authority (HKMA), which regulates fiat-referenced stablecoin issuers.
Key authorities
- Securities and Futures Commission (SFC): It will regulate VATPs, crypto exchanges, advisory services, dealers, and custodians under the Securities and Futures Ordinance (SFO) and Anti-Money Laundering Ordinance (AMLO); plans to introduce a draft bill in 2026 to regulate crypto advisory and dealing services.
- Hong Kong Monetary Authority (HKMA): It will regulate stablecoin issuances under the Stablecoins Ordinance, which will come into effect in August 2025. It will also grant the first licenses in March 2026.
Governing laws
- Anti-Money Laundering Ordinance (AMLO), Part 5B: Requires VASP licensing for non-security token trading platforms since 2023, regulated by SFC.
- Securities and Futures Ordinance (SFO): Covers security tokens through SFC licenses (Types 1, 7, 9); to cover OTC dealers and custodians in 2026.
- Stablecoins Ordinance: Governs fiat-referenced stablecoin activities, requiring HKMA licensing to operate in Hong Kong.
- Future 2026 framework: Proposed ordinance by the Financial Services and Treasury Bureau/SFC for crypto advisory, dealer, and custodian services, in line with OECD tax reporting by 2028.
Regulatory requirements to obtain Hong Kong Crypto License in 2026
Corporate structure
- Minimum of 1 shareholder of any nationality.
- Minimum of 1 local director.
- Minimum of 1 local compliance officer.
- Local physical office required.
- Paid-up capital minimum of HKD 5,000,000.
Personnel
- At least 2 responsible officers: 1 Executive Director (no residency restriction) and 1 full-time Hong Kong resident.
- Licensed representatives with relevant qualifications and experience.
Financial and compliance
- Audit standards: HKSAE 3000, ISAE 3000, or Direct Assurance Engagement.
- 98% cold wallet mandate for client assets.
- Insurance coverage ratios: 50% hot wallet / 100% total assets.
- Travel Rule compliance.
Platform operations
- WINGS Portal registration for real-time reporting.
- Listing on SFC Public Register post-approval.
- VATP Consultative Panel engagement for policy input.
Safekeeping and protection
- Asset safekeeping protocols: Segregated custody, hot/cold wallet allocation (98% cold), SFC-approved insurance.
- Investor protection: Suitability tests, risk statements, compensation schemes.
Types of Hong Kong Crypto License in 2026
Hong Kong has two major frameworks governing cryptocurrency activities: the Securities and Futures Commission (SFC) under the Securities and Futures Ordinance (SFO) for security tokens, and the Anti-Money Laundering Ordinance (AMLO) for non-security virtual assets.
SFC License Types
- These mainly pertain to cryptocurrency activities involving security or utility tokens as securities.
- Type 1 (Dealing in Securities): This license is for authorization to deal in buying and selling cryptocurrencies that are considered securities, usually necessary for trading platforms or brokers.
- Type 7 (Automated Trading Services): This license is for authorization to operate automated trading services, which usually include operating central virtual asset trading platforms (VATPs), in combination with Type 1.
- Type 9 (Asset Management): This license type includes the management of portfolios with over 10% virtual assets, which usually include crypto funds.
AMLO VASP License
- Platforms trading non-security tokens, such as Bitcoin or Ether, must obtain this license issued by the SFC under Part 5B of AMLO, which is now mandatory for operations targeting Hong Kong, since June 2023.
Stablecoin Issuer License
- From August 2025, fiat-referenced stablecoin issuers must obtain HKMA approval, which must be backed by full reserves, with SFC licensed bodies among the offerors.
Why most firms require both SFO and AMLO licenses?
- Firms require SFO and AMLO licenses to operate as they are required to be compliant with Hong Kong’s dual-track virtual asset regime, where non-security virtual assets are subject to regulation under Part 5B of the AMLO for VATPs dealing in Bitcoin and Ethereum, while security tokens are subject to SFO regulation under Type 1/7.
- The firms require an SFO license to deal in securities and ATS, as well as an AMLO VASP license to be compliant with AML requirements, as required by the SFC since 2023.
Taxation policies for Hong Kong Crypto License in 2026
0% Capital Gains Tax:
- Exemption for individuals (long-term) and trading profits on cryptocurrencies; applies to institutional investors such as hedge funds, private equity, and family offices through fund tax exemptions from 2026.
Profits Tax Exemption:
- Offshore funds involving virtual assets are exempt if profits are not sourced in Hong Kong; applies to trading, custody, and associated services under a single fund regime.
CARF Implementation:
- Crypto-service providers (VASPs) are required to report user transactions from 2027 for exchange with countries from 2028, promoting transparency without levying direct taxes.
No VAT or Sales Tax:
- Cryptocurrencies are exempt from value-added and goods/services taxes; mining/staking activities are considered business income if sourced in Hong Kong (8.25-16.5% profits tax).
Stamp Duty:
- Stamp duty applies to the transfer of tokenized securities but not to cryptocurrencies; no changes for 2026 licenses.
A-S-P-I-Re Principles
- The SFC of Hong Kong has articulated the “A-S-P-I-Re” principles in September 2025 as a guideline for virtual assets. These principles focus on innovation and investor protection.
Access:
- Retail investors should be allowed to access the market gradually through licensed platforms, with proper investor profiling and risk suitability.
Safeguards:
- Strong AML/CFT, cybersecurity, and financial strength, including custody and insurance of client funds.
Products:
- Focuses on simple and easy-to-understand VA products such as BTC/ETH spot trading. Complex derivatives are allowed only for professionals.
Infrastructure:
- Requires sound technology, real-time monitoring, and external audits for trading infrastructure and risk management.
Relationships:
- Increased SFC supervision with regular inspections, technology-neutral rules, and global regulatory harmonization.
Activities allowed under Hong Kong Crypto License
Activities allowed under a Hong Kong crypto license, particularly through the Virtual Assets Trading Platform (VATP) license, are closely regulated by the Securities and Futures Commission (SFC). The activities allowed are as follows:
Trading activities:
- Regular offers: Licenses allow licensees to regularly offer to buy or sell virtual assets. It results in legally binding transactions. Business enterprises can therefore facilitate virtual asset trades within a regulated framework.
- Client onboarding: Businesses can also onboard clients who may be interested in discussing or executing their virtual asset-related negotiations or transactions, further expanding the possible client-based involvement of a firm in the crypto markets.
Assets management:
- Portfolio management: Licenses granted for firms handling portfolios including virtual assets, and that asset management must be performed in and under the supervision of the requirements of the SFC.
Client asset handling:
- Possession of client assets: VASPs can possess client funds or virtual assets directly or indirectly. In this case, they will be able to service client assets but under the prescribed compliance.
Restrictions on services:
- Licensing for securities-related services: An entity would not offer services that would involve virtual assets which fall under the definition of a security unless the entities obtain the necessary license. Hence, any business entity which engages in securities related activities will not violate SFO.
Procedure to obtain Hong Kong crypto license
Step 1: Company incorporation
- Initially, we will register a company, preferably a limited liability company, in Hong Kong within 1 week. This will involve the opening of a physical office and the hiring of local personnel, with at least one director who must be a Hong Kong resident and a local company secretary. The company will also need to maintain a minimum share capital of HKD 5,000,000 for regulatory purposes.
- We also offer international trademark registration services to protect your company name and brand identity globally, thus ensuring that your business is protected as it enters the Hong Kong market.
Step 2: Prepare required documentation
- Tetra Consultants team of lawyers and licensing specialists will further begin to draft all the necessary paperwork that would be required, using professional legal drafting services, and ensure full compliance with the regulatory demands of Hong Kong. All financial projections for 3 to 5 years should be included in the plan.
- Furthermore, an adequate compliance policy on AML/CTF measures should be developed to ensure comprehensive compliance. We will also include an organizational chart showing who owns the company and the management level, giving clear outlines based on Hong Kong standards.
Step 3: Appointment of responsible officers and licensed representatives
- Furthermore, our HR would appoint at least two Licensed Representatives and at least one of those is an executive director and an actual full-time resident in Hong Kong.
- Our HR team also helps in finding and appointing 2 responsible officers (one of which must be a resident) that handle compliance and risk management to ensure that the company is fully compliant and has a sound governance system.
Step 4: Conduct fit and proper test
- Further, once the officers and representatives have been appointed, our lawyers and licensing specialists will pass all the key staff members through fit and proper tests undertaken by the SFC.
- Assessments would cover the integrity, competence, and financial solvency of every individual and would also confirm the absence of criminal records. Thus, we ensure that regulatory standards are adhered to.
Step 5: Submit application
- Once all regulatory standards are met, we will proceed with submitting the application through the SFC’s WINGS portal. This submission will include all required documents, applicable fees, and a detailed outline of the services intended to be offered in the Hong Kong market.
Step 6: Await approval
- Assuming no issues, we should anticipate the application to be cleared within 3 to 5 months.
Step 7: Corporate bank account opening
- Upon approval of the license, Tetra Consultants’ team of legal specialists and licensing experts would facilitate the clients with the corporate bank account opening with reliable Hong Kong banks. It takes about 4 weeks.
- All documentation to open a bank account will be prepared and submitted to satisfy the requirements of the desired bank by Tetra Consultants. We would work along with banks to smooth out the whole procedure of account opening and then communicate with the relevant bank as needed to finalize further details and queries.
Step 8: Maintain operational standards
- Furthermore, Tetra Consultants experts and specialists will ensure ongoing compliance with all regulatory requirements following the licensing approval. This includes regular reporting to the Securities and Futures Commission (SFC) and strict adherence to Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) policies.
- Additionally, we will establish internal audit functions and implement robust cybersecurity measures to safeguard client assets effectively.
- Additionally, our tax and accounting experts will also be handling all your filings and tax obligations.
A detailed breakdown of the 2025 single-stage external assessment requirement
- The SFC of Hong Kong introduced the single-stage external assessment for VATP licensing in 2025 to simplify the previous two-stage process (Phase 1 preliminary review for approval-in-principle, followed by Phase 2 full compliance checks within 12 months).
The major changes are:
Pre-assessment infrastructure deployment:
- The applicant is required to deploy their operational infrastructure, controls, and risk management strategies before the external assessment process starts, allowing a genuine readiness test, unlike the previous staged launch.
Tripartite engagement:
- The SFC will engage actively with the platform operator and the independent external assessor, offering real-time feedback, explanations, and guidance to close the gaps effectively.
Comprehensive single evaluation:
- Replacing the previous staged process with a single evaluation phase (approximately 6-9 months), including AML/CFT, cybersecurity, financial resources, and governance; defaulting to a possible complete denial without partial approval.
Advantages of Hong Kong Crypto License
Credibility and trust
- Acquiring a crypto license in Hong Kong is a considerable boost for the business credibility, allowing the business to gain clients’ and investors’ trust. This helps particularly with attracting institutional investors who tend to prefer the regulated entity.
Robust regulatory framework
- Hong Kong possesses a clear and well-established regulatory structure governing cryptocurrency. Clear regulation allows for the safety of businesses to carry out activities within the borders of legality, thus posing minimal risks for compliance issues.
Business-friendly environment
- Low corporation taxes and no capital gain tax on cryptocurrencies make it the most business-friendly region, ideal for crypto startup location and expansion with smooth governance.
Access to capital
- It is a global finance center where different investors as well as venture capitalists meet. A Hong Kong crypto exchange license opens various doors to massive funding business opportunities for expansion.
Ecosystem support
- Hong Kong’s dynamic crypto ecosystem is filled with a number of startups, industry events, and networking opportunities. There are also specialized associations and incubators that encourage collaboration and innovation in the sector.
International market access
- Hong Kong’s infrastructure and relationships act as a gateway to Asia and global markets and help businesses with a crypto license expand beyond local borders.
Global recognition
- Hong Kong has rules that are consistent with those of the world, allowing companies to be accessed by the global economy and enables them to expand into other jurisdictions with minimal legal barriers.
Potential tax incentives
- Recent discussions indicate the proposal of introducing tax incentives on crypto investments which makes the jurisdiction more attractive for crypto businesses.
Reputation in the crypto community
- Obtaining a Hong Kong crypto exchange license would give a company prestige in the global crypto community, making it more attractive to partners and clients from around the world.
- Tetra Consultants helps clients to get a Hong Kong cryptocurrency license under the Virtual Asset Trading Platform (VATP) regime administered by the Securities and Futures Commission. After 1 week of receiving the necessary due diligence documents, our experts will incorporate the Hong Kong company.
Timeline to obtain Hong Kong Crypto License
- This is followed by a regulatory preparation phase of around 3 weeks, which includes the development of the AML/CFT framework, internal compliance structuring, and readiness.
- After the preparation phase, the application for the VATP license is submitted to the SFC via the WINGS Portal. Taking into consideration the current trends in the supervisory processing of the SFC in 2026, the approval process takes around 3-5 months, depending on additional queries or requests for documents.
- If necessary, Tetra Consultants can also help with nominee director and shareholder services and post-licensing banking services.
What is the cost of acquiring Hong Kong Crypto License?
- The cost of acquiring a Hong Kong crypto license includes costs such as structuring costs, compliance costs, and application costs to the government. Tetra Consultants assists clients with the cost of acquiring a Hong Kong crypto license and the entire process of acquiring the same, including incorporation, compliance with anti-money laundering and countering financing of terrorism requirements, and application to the Securities and Futures Commission through the WINGS Portal.
- As per the 2026 SFC processing trends, the applicant needs to meet requirements such as HKSAE 3000 and ISAE 3000, align with the A-S-P-I-Re Roadmap and LEAP Framework, and be listed on the SFC Public Register while working with the VATP Consultative Panel and VATP Guidelines.
Looking to obtain Hong Kong Crypto License
- Tetra Consultants works as your advisor and trusted partner in your business expansion and cryptocurrency license application. With our own team of lawyers, licensing specialists, compliance team, and accountants, we tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients.
- Contact us to know more about Hong Kong crypto license and our team will revert back in 24 hours.
FAQ:
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Author
Sharma Prabakaran
Sharma Prabakaran is the Head of International Business Advisory at Tetra Consultants. With over 15 years of professional experience, he specialises in international business setup, accounting and tax advisory, and cross-industry SME engagements. His expertise encompasses end-to-end project management, ranging from company incorporation and corporate bank account establishment to ongoing annual accounting and tax compliance.