Hong Kong to Mandate Licensing for Crypto Dealers and Custodians
Hong Kong’s 2026–27 Budget allocates measures to support what authorities call “new quality productive forces,” including mandatory licensing for crypto dealers and custodians and updates to tax rules for individuals and institutions engaged in digital-asset activities. The package signals a move to formalize registration and licensing obligations across trading, custody and related services as part of the city’s evolving digital-asset framework.
The change matters because it reduces legal uncertainty and could boost investor protection, but it will also bring compliance costs that may prompt consolidation or a shift in market participation. International and local firms will watch how Hong Kong aligns these rules with global standards on custody, AML and tax transparency. Market participants should prepare for licensing applications, governance upgrades and potential tax adjustments as the budget measures are implemented in the coming fiscal year.