You can buy cryptocurrency through licensed exchanges, peer-to-peer marketplaces, or brokers using HKD.
There is no capital gains tax on crypto, but frequent trading profits are taxed as profits tax up to 16.5%.
Virtual asset trading platforms must be licensed by the SFC, with a transitional period until May 31, 2024.
As of 2025, retail investors can only access licensed platforms if they meet suitability requirements. Professional Investor (PI) status requires a portfolio of at least HKD 8 million.
Hong Kong remains one of the most crypto-friendly jurisdictions, offering clear regulation, 0% capital gains tax, and strong support for blockchain development.
Cryptocurrencies are not legal tender but are treated as virtual assets under Hong Kong law.
In 2025, Hong Kong remains one of the most crypto-friendly jurisdictions, offering clear regulations, a 0% capital gains tax, and strong government support for blockchain development.
Although cryptocurrencies are not legal tender, they are treated as virtual assets under Hong Kong law. The Securities and Futures Commission (SFC) regulates virtual asset trading platforms (VATPs) through a licensing regime introduced in June 2023.
This article breaks down the updated 2025 rules for crypto in Hong Kong, including who needs a license, how to obtain one, key requirements, retail investor restrictions, post-licensing compliance duties, and the latest SFC regulatory roadmap. If you're operating or investing in crypto in Hong Kong, this guide gives you everything you need to know.
What is a Hong Kong Crypto License?
A Hong Kong crypto license is an authorization granted by the SFC under:
- The Securities and Futures Ordinance (SFO) – for platforms offering security tokens or automated trading
- The Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) – for platforms offering virtual asset services
All centralized virtual asset trading platforms operating in or marketing to Hong Kong must be licensed.
Who Needs a Hong Kong Crypto License?
You must apply for a crypto license if you:
- Operate a centralized trading platform
- Offer trading in security or non-security tokens
- Match client orders and hold custody of client assets
Licenses apply to:
- Licensed Corporations (LCs)
- Virtual Asset Service Providers (VASPs)
- Their Licensed Representatives (LRs) and Responsible Officers (ROs)
Platforms are encouraged to obtain licenses under both SFO and AMLO to avoid legal grey areas when tokens shift classification.
How to Get a Crypto License in Hong Kong
All crypto license applications in Hong Kong must be submitted online through the SFC’s WINGS portal.
You’ll need to open a WINGS account and follow the application steps using the SFC’s official user guide and demo.
If you're applying under both SFO and AMLO, you can file a single consolidated application and select both license types in one go.
- Create a WINGS Account: Sign up on the SFC’s WINGS platform. You’ll need this account to access, complete, and submit your application.
- Start a Licensing Bundle: Go to "Licensing Applications" under “Submission Management.” Add and upload the required forms into a new application bundle.
- Complete and Validate Forms: Fill out the forms. Use the “Validate” function to check for errors. You can validate forms one-by-one or the whole bundle.
- E-Sign the Forms: After validation, sign the forms electronically. You can sign them yourself or route them to others for signature.
- Submit the Application: Once all forms are signed, enter contact details and click “Submit”. Submission tracking is available on the portal.
- Track or Edit the Submission: After submission, you can monitor status, send queries via WINGS Mail, or request application changes if needed.
Hong Kong Crypto License Requirements
To apply for a Hong Kong crypto license, you must prepare and submit a complete application bundle through the SFC’s WINGS portal.
The SFC charges fees based on the license type and applicant role. Below is the fee structure:
All fees are per regulated activity. Each role or license type applied for is charged separately.
The VATP Licensing Handbook issued by the SFC outlines detailed licensing procedures, ongoing compliance duties, and post-licensing obligations.
Make sure to review it thoroughly before submission to avoid delays or rejections.
Key Documents Required
Your application must include:
- Completed licensing forms
- Internal policies and procedures
- Appointment of a qualified External Assessor (EA)
- EA’s capability statement
Refer to the SFC circular (16 Jan 2025) and EA FAQ for full submission details.
2025 Updates to Crypto Licensing Rules
As of 18 December 2024, the SFC introduced changes to make the licensing process more efficient:
- Systems must be deployed before an EA can assess them.
- A tripartite agreement must be signed between the platform, EA, and SFC.
- The SFC is now directly involved in defining and reviewing the EA’s assessment scope.
- Assessments must be conducted by a Certified Public Accountant (CPA), evaluating both system design and actual operations.
List of SFC-Licensed Crypto Exchanges in Hong Kong
This table lists all virtual asset trading platforms that are formally licensed by the Securities and Futures Commission (SFC) as of April 7, 2025.
These exchanges are legally authorized to operate and offer virtual asset trading services in Hong Kong under current regulations.
This list only includes fully licensed platforms. It does not include applicants or deemed-to-be-licensed operators. Always verify status on the official SFC Public Register.
Post-Licensing Regulations and Compliance for Crypto Exchanges in Hong Kong
Once licensed, a virtual asset trading platform (VATP) in Hong Kong must comply with strict ongoing regulatory duties enforced by the Securities and Futures Commission (SFC).
This includes mandatory filings, incident reporting, financial submissions, and participation in formal regulatory processes.
All licensed platforms must:
- Report material breaches and non-compliance
- Submit financial and liquidity returns
- File annual audit questionnaires
- Participate in risk management reviews
- Disclose client asset holdings
Retail Investor Restrictions
As of 2025, retail investors may access licensed platforms only if they meet suitability requirements.
Generally, only professional investors (with portfolios over HKD 8 million) have unrestricted access.
The SFC’s “ASPIR” roadmap explores broader access under strict controls, but changes are not yet implemented.
Cryptocurrency AML/CFT Laws, Rules, and Regulations
In December 2022, Hong Kong passed the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022, introducing a new licensing regime for Virtual Asset Service Providers (VASPs).
The legislation came into effect on April 1, 2023, and mandatory licensing of centralized crypto exchanges by the Securities and Futures Commission (SFC) commenced on June 1, 2023, with a transitional period ending May 31, 2024.
Under this regime, all centralized trading platforms that operate in Hong Kong or target local investors must obtain a license from the SFC and meet strict anti-money laundering (AML) and counter-terrorist financing (CFT) obligations.
The SFC is empowered to impose licensing conditions covering:
- AML/CFT compliance policies
- Risk management systems
- Financial resource requirements
- Cybersecurity measures
Hong Kong is a member of the Financial Action Task Force (FATF) and adheres to its global standards on virtual assets and VASPs. The SFC works in coordination with the Hong Kong Monetary Authority (HKMA) and other financial regulators to enforce these standards.
Under AMLO and Cap. 455, all financial institutions and VASPs must:
- Conduct Know Your Customer (KYC) and due diligence checks
- Monitor transactions for suspicious activities
- File Suspicious Transaction Reports (STRs) to the Joint Financial Intelligence Unit (JFIU)
Failure to file a required STR may result in:
- Imprisonment of up to 3 months, and
- A fine of up to HKD 50,000
Reporting Requirements for Crypto in Hong Kong
Unlike many jurisdictions, Hong Kong does not impose capital gains tax, which makes it attractive for crypto investors.
However, profits generated from frequent or business-like cryptocurrency trading may be subject to Profits Tax (16.5% for corporations, 15% for individuals).
While individuals are not required to report every crypto transaction to the government, licensed Virtual Asset Trading Platforms (VATPs) under the Securities and Futures Commission (SFC) must comply with AML/CFT requirements, including KYC procedures and the reporting of suspicious transactions.
Crypto earnings must be declared in tax returns if the activities constitute a trade, business, or professional activity. The Inland Revenue Department (IRD) determines tax liability based on the frequency, volume, and intent of transactions, applying the “badges of trade” principles.
Conclusion
Hong Kong’s licensing regime for crypto is one of the most structured in the world. The SFC enforces high compliance standards, limiting who can operate and who can invest.
Whether you’re launching a crypto exchange or offering digital asset services, getting licensed in Hong Kong is mandatory and complex.
Want to operate a crypto business in Hong Kong?
Air Corporate can help you navigate the SFC license process, meet AML/CFT rules, and get your crypto venture up and running legally.
