Hong Kong Compliance Report

Regulatory Overview

Regulatory Status

Dedicated crypto/VA legislation, licensing regime, active enforcement

Key Regulator(s)

Legislative Council, Financial Services and the Treasury Bureau, Securities and Futures Commission, Hong Kong Monetary Authority

Risk Level

low

Primary Legislation

AMLO (Cap. 615) Part 5B, inserted by the AMLO (Amendment) Ordinance 2022 (Ord. N, Securities and Futures Ordinance (Cap. 571), in force since 1 April 2003: a virt, Stablecoins Ordinance (Cap. 656): passed by the Legislative Council on 21 May 20, Hong Kong's stablecoin framework is in force: the Stablecoins Bill passed the Le, The Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615, A, Under the Stablecoins Ordinance passed on 21 May 2025 and in effect since 1 Augu, The Stablecoins Ordinance (Cap. 656) took effect on 1 August 2025: issuing fiat-

Travel Rule

Adopted — Threshold: Implemented

Tax Reporting

Hong Kong charges no capital gains tax: profits tax applies to profits arising in or derived from Hong Kong from a trade, profession or business, excluding profits from the sale of capital assets, at two-tier rates of 8.25%/16.5% for corporations and 7.5%/15% for unincorporated businesses (threshold HK$2 million); IRD guidance on digital assets is DIPN No. 39 (March 2020).

Key Facts

• general The University of Hong Kong (HKU): Extremely strong across humanities, biomedical sciences, and social sciences. The Chinese University of Hong Kong (CUHK): Known for its multidisciplinary approach and focus on social sciences and engineering. The Hong Kong University of Science and Technology (HKUST): Particularly strong in engineering, computer science, and data sciences. Polytechnic University of Hong Kong (PolyU): Excellent in applied science, engineering, and technology. The Research Fund Scheme (RFS): Key funding mechanisms provided by the Hong Kong government to support research and development. Local Innovation & Technology Clusters: Government initiatives aimed at developing specific industrial clusters (e.g., Science Park Hong Kong). Government Grants: Support for fundamental research, promoting innovation in specific strategic sectors (e.g., AI, healthcare). Venture Capital (VC): Hong Kong is a gateway for global VC funds, which fuel commercialization and move research findings into market products.
• licensing SFC — licenses VA trading platforms under AMLO Part 5B (13 licensed as of 12 October 2026) and SFO Types 1/7 for security tokens; supervision and enforcement HKMA — licenses fiat-referenced stablecoin issuers under the Stablecoins Ordinance (Cap. 656, in effect 1 August 2025; first two licences 10 April 2026), supervises banks, runs the Fintech Supervisory Sandbox FSTB — virtual asset policy (policy statements of October 2022 and 26 June 2025) and legislative proposals, including the VA dealer, custodian, advisory and management licensing bill targeted for 2026 JFIU — Joint Financial Intelligence Unit — suspicious transaction reports AMLO (Cap. 615) Part 5B, inserted by the AMLO (Amendment) Ordinance 2022 (Ord. No. 15 of 2022, gazetted 16 December 2022), introduced mandatory SFC licensing of centralised virtual asset trading platforms from 1 June 2023; licensed platforms may serve both professional and retail investors, subject to SFC token-admission and investor-protection requirements. Securities and Futures Ordinance (Cap. 571), in force since 1 April 2003: a virtual asset trading platform offering trading in security tokens needs SFC licences for Type 1 (dealing in securities) and Type 7 (providing automated trading services) regulated activities. Stablecoins Ordinance (Cap. 656): passed by the Legislative Council on 21 May 2025 and in effect since 1 August 2025. Issuing a fiat-referenced stablecoin in Hong Kong, or a Hong Kong dollar-referenced one in or outside Hong Kong, requires an HKMA licence. The first licences, to Anchorpoint Financial Limited (FRS01) and HSBC (FRS02), took effect on 10 April 2026. A VATP licence from the SFC under AMLO Part 5B has been mandatory since 1 June 2023. The SFC VATP Guidelines require paid-up share capital of at least HK$5,000,000 and liquid capital of at least the higher of HK$3,000,000 and the Financial Resources Rules basic amount (paras 6.2-6.3), storage of 98% of client virtual assets in cold storage (para 10.6(c)), and large-cap index tests for retail-tradable tokens (para 7.8). The SFC list shows OSL Exchange (licensed 15/12/2020) and HashKey Exchange (09/11/2022) as the earliest licensed platforms; 13 were licensed on 12 Oct 2026.
• securities The HKMA authorises banks and other authorized institutions under the Banking Ordinance and, since the Stablecoins Ordinance (Cap. 656) commenced on 1 August 2025, licenses fiat-referenced stablecoin issuers, granting the first two licences on 10 April 2026; with the SFC it issued the joint circulars on intermediaries’ virtual asset-related activities (20 October and 22 December 2023). Insurance Authority (IA), Mandatory Provident Fund Schemes Authority (MPFA), Customs & Excise Department (CED), Companies Registry (CR) – oversee ancillary financial services; see resourcehub.bakermckenzie.com for details. The Securities and Futures Ordinance (Cap. 571) commenced on 1 April 2003; Schedule 5 defines 13 types of regulated activity, and tokenised securities fall within the Schedule 1 definition of securities (SFC circular 23EC52, 2 November 2023). Since 1 June 2023 the AMLO (Cap. 615) has required centralised virtual asset trading platforms carrying on business in Hong Kong or actively marketing to Hong Kong investors to be licensed by the SFC; AMLO licensees appear on the SFC public register, and the SFC list updated 12 October 2026 shows 13 licensed platforms, from OSL Exchange (15 Dec 2020) to Bixin.com (18 May 2026). The HKMA authorises and supervises authorized institutions (licensed banks, restricted licence banks and deposit-taking companies) under the Banking Ordinance; its Guideline on Authorization of Virtual Banks (30 May 2018) was revised on 25 October 2024 and renamed the Guideline on Authorization of Digital Banks. FATF Recommendations – Hong Kong aligns with the Financial Action Task Force (FATF) standards; see IMF ROSC report from August 1999 (IMF ROSC). Hong Kong is listed among jurisdictions implementing FATF recommendations; the SFC’s AML/KYC regime mirrors global best practices. Activities Requiring Licensing (per SFC Licence Types)
• stablecoin The SFC licenses virtual asset trading platforms under the AMLO (Cap. 615, Part 5B) from 1 June 2023 and security-token activity under the SFO (Cap. 571); under its circular of 27 May 2026 (26EC26), VATPs and licensed corporations may offer stablecoins issued by an HKMA licensee under the Stablecoins Ordinance after prior written notification to the SFC rather than prior approval. The HKMA licenses fiat-referenced stablecoin (FRS) issuers under the Stablecoins Ordinance (Cap. 656), in force since 1 August 2025: a licence is required to issue an FRS in Hong Kong or an HKD-referenced FRS in or outside Hong Kong, only licensed FRS may be offered to retail investors or advertised, and the first two licences (Anchorpoint Financial, FRS01; HSBC, FRS02) took effect on 10 April 2026 out of 36 applications.
• status Hong Kong licenses virtual asset trading platforms under the AMLO (Cap. 615, Part 5B) since 1 June 2023, with 13 licensed platforms on the SFC list as of 12 October 2026; the Stablecoins Ordinance (Cap. 656) has been in force since 1 August 2025 with two HKMA issuer licences effective 10 April 2026; licensing regimes for VA dealers and custodians were concluded on 24 December 2025 and await a bill targeted for 2026.
• tax Hong Kong charges no capital gains tax: profits tax applies to profits arising in or derived from Hong Kong from a trade, profession or business, excluding profits from the sale of capital assets, at two-tier rates of 8.25%/16.5% for corporations and 7.5%/15% for unincorporated businesses (threshold HK$2 million); IRD guidance on digital assets is DIPN No. 39 (March 2020).
• travel rule Hong Kong's travel rule for SFC-licensed VASPs applies from 1 June 2023 under AMLO Sch. 2 s.13A; transfers of HK$8,000 or more need fuller originator data and verification, and smaller transfers still need names and account numbers (SFC AML/CFT Guideline paras 12.11.5–12.11.6). No direct URLs to Hong Kong legislation (e.g., AMLO amendments or SFC/HKMA guidelines) are provided in results. The HKMA FATF travel‑rule updates linked on https://www.hkma.gov.hk/eng/key-functions/banking/anti-money-laundering-and-counter-financing-of-terrorism/fatf-related-statments-update/ no longer reflect the most recent Hong Kong SAR China regulatory stance as of November 2023. Global status trackers confirm implementation: https://www.21analytics.co/blog/fatf-crypto-travel-rule-status-2026/ and Japanese FSA list: https://www.fsa.go.jp/en/news/2025/20250625/01.pdf

Sources

• https://www.sfc.hk/en/News-and-announcements/Policy-statements-and-announcements/Statement-on-initial-coin-offerings
• https://apps.sfc.hk/edistributionWeb/api/circular/list-content/circular/doc?refNo=23EC52&lang=EN
• https://www.sfc.hk
• https://apps.sfc.hk/edistributionWeb/api/circular/list-content/circular/doc?refNo=25EC57&lang=EN
• https://apps.sfc.hk/edistributionWeb/api/circular/list-content/circular/doc?lang=EN&refNo=23EC27
• https://www.sfc.hk/en/Regulatory-functions/Intermediaries/Licensing/Do-you-need-a-licence-or-registration
• https://www.sfc.hk/en/Regulatory-functions/Intermediaries/Licensing/Register-of-licensed-persons-and-registered-institutions
• https://www.sfc.hk/en/Regulatory-functions/Intermediaries/Licensing/Types-of-intermediary-and-licensed-individual
• https://www.sfc.hk/en/Welcome-to-the-Fintech-Contact-Point/Virtual-assets/Virtual-asset-trading-platforms-operators/Lists-of-virtual-asset-trading-platforms
• https://www.sfc.hk/en/Published-resources/Statistics
• https://www.sfc.hk/en/Rules-and-standards/Circulars
• https://www.deacons.com/2025/08/29/hong-kong-sfc-licensing-and-compliance-hints-august-2025/
• https://www.bovill-newgate.com/asia/getting-licensed-in-hong-kong-successfully-navigating-the-sfcs-process/
• https://www.sfc.hk/en/Regulatory-functions/Intermediaries/Licensing/Application-procedures
• https://www.morganlewis.com/pubs/2026/04/hkex-publishes-listing-rule-amendments-to-implement-uncertificated-securities-market
• https://howsewilliams.com/en/capital-markets-quarterly-april-2026/
• https://kpmg.com/cn/en/insights/2026/06/china-hk-ipo-2026-mid-year-review.html
• https://www.lw.com/en/insights/key-regulatory-updates-for-hong-kong-listed-companies-march-april-2026
• https://www.sfc.hk/en/About-the-SFC/Regulatory-collaboration
• https://apps.sfc.hk/edistributionWeb/api/news/list-content?refNo=19PR105&lang=EN
• https://www.hkma.gov.hk/eng/key-functions/international-financial-centre/stablecoin-issuers/
• https://www.hkma.gov.hk/eng/regulatory-resources/registers/register-of-licensed-stablecoin-issuers/
• https://www.hkma.gov.hk/eng/key-functions/international-financial-centre/fintech/fintech-supervisory-sandbox-fss/
• https://www.info.gov.hk/gia/general/202506/26/P2025062600269.htm
• https://apps.sfc.hk/edistributionWeb/api/news/list-content?refNo=25PR210&lang=EN
• https://www.jfiu.gov.hk/en/aboutus.html
• https://apps.sfc.hk/edistributionWeb/api/circular/list-content/circular/aml/doc?refNo=22EC71&lang=EN
• https://www.sfc.hk/-/media/EN/assets/components/codes/files-current/web/guidelines/Guidelines-for-Virtual-Asset-Trading-Platform-Operators/Guidelines-for-Virtual-Asset-Trading-Platform-Operators.pdf
• https://www.hkma.gov.hk/eng/news-and-media/press-releases/2025/05/20250521-3/
• https://apps.sfc.hk/edistributionWeb/api/news/list-content?refNo=24PR95&lang=EN
• https://www.hkicpa.org.hk
• https://www.icac.org.hk
• https://www.ird.gov.hk
• https://www.hkicpa.org.hk/en/Standards-and-regulation/Standards/Forensic-Accounting
• https://www.sfc.hk/en/Regulatory-functions/Corporate-finance/Takeovers-and-mergers/The-Code-on-Takeovers-and-Mergers
• https://www.ird.gov.hk/eng/tax/dipn/dipn46.htm
• https://www.hkex.com.hk/Rules/Listed-Companies/Appendix-14-Corporate-Governance-Code?sc_lang=en
• https://www.cr.gov.hk/en/companies/index.htm
• https://www.pcpd.org.hk/english/data_privacy_law/overview.html
• https://www.sfc.hk/en/Regulatory-functions/Intermediaries/Culture-and-conduct
• https://www.hkicpa.org.hk/en/Standards-and-regulation/Standards/Auditing-and-assurance
• https://www.cr.gov.hk/en/companies/books-and-records.htm
• https://www.sfc.hk/en/Regulatory-functions/Intermediaries/Management-supervision-and-internal-control
• https://www.sfc.hk/en/Regulatory-functions/Intermediaries/Anti-money-laundering-and-counter-terrorist-financing
• https://www.hkex.com.hk/Rules/Listed-Companies/Chapter-18C?sc_lang=en
• https://www.elegislation.gov.hk/hk/cap.582
• https://www.compcomm.hk/en/legislation/guidelines.html
• https://www.jdsupra.com/legalnews/key-regulatory-updates-for-hong-kong-9504854/
• https://www.msn.com/en-us/news/other/hong-kong-urged-to-expand-ai-role-beyond-ipo-hub/gm-GML97DF160?ocid=BingNewsVerp
• https://www.msn.com/en-us/news/politics/opinion-congress-has-no-excuse-left-on-hong-kong-s-spy-offices/ar-AA23cNfs?ocid=BingNewsVerp
• https://finance.yahoo.com/markets/stocks/articles/hong-kong-maintains-ipo-dominance-074955086.html
• https://www.reuters.com/world/china/goldman-sachs-bars-hong-kong-bankers-anthropic-ai-use-ft-reports-2026-04-29/
• https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3351196/hong-kong-airports-revenue-expected-grow-10-despite-Mideast-war
• https://www.scmp.com/news/hong-kong/society/article/3351019/confusion-over-government-agencies-roles-fire-oversight-tai-po-probe-reveals
• https://www.forbes.com/sites/technology/article/how-to-fact-check-ai/
• https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3351196/hong-kong-airports-revenue-expected-grow-10-despite-mideast-war
• https://apps.sfc.hk/edistributionWeb/api/news/list-content?refNo=25PR99&lang=EN
• https://www.info.gov.hk/gia/general/202605/26/P2026052600567.htm
• https://www.hkma.gov.hk/eng/news-and-media/press-releases/2025/07/20250729-4/
• https://www.sfc.hk/-/media/EN/assets/components/codes/files-current/web/guidelines/guideline-on-anti-money-laundering-and-counter-financing-of-terrorism-for-licensed-corporations/AML-Guideline-for-LCs-and-SFC-licensed-VASPs_Eng_1-Jun-2023.pdf
• https://www.sfc.hk/en/Rules-and-standards/Codes-and-guidelines/Guidelines?rule=Guidelines%20for%20Virtual%20Asset%20Trading%20Platform%20Operators
• https://www.sfc.hk/-/media/EN/assets/components/Guidelines/File-current/Licensing-Handbook-for-VATPs_July-2025.pdf
• https://www.hkma.gov.hk/eng/news-and-media/press-releases/2026/04/20260410-4/
• https://www.info.gov.hk/gia/general/202211/23/P2022112300293.htm
• https://www.sfc.hk/en/Welcome-to-the-Fintech-Contact-Point
• https://www.sfc.hk/en/Welcome-to-the-Fintech-Contact-Point/SFC-Regulatory-Sandbox
• https://www.ird.gov.hk/eng/tax/bus_pft.htm
• https://www.ird.gov.hk/eng/ppr/dip.htm
• https://www.sfc.hk/en/Welcome-to-the-Fintech-Contact-Point/Virtual-assets/Virtual-asset-trading-platforms-operators/Regulatory-requirements
• https://www.fstb.gov.hk/en/blog/blog020224.htm
• https://www.legal500.com/guides/chapter/hong-kong-blockchain-crypto-assets/?export-pdf
• https://www.sfc.hk/en/News-and-announcements/News/Enforcement-news
• https://www.elegislation.gov.hk/hk/cap615
• https://www.elegislation.gov.hk/hk/cap571
• https://www.sfc.hk/en/Rules-and-standards/Codes-and-guidelines/Guidelines
• https://eservices.customs.gov.hk/MSOS/index
• https://www.info.gov.hk/gia/general/202606/10/P2026061000429.htm
• https://www.hkma.gov.hk/eng/key-functions/banking/banking-regulatory-and-supervisory-regime/
• https://apps.sfc.hk/edistributionWeb/api/circular/list-content/circular/doc?refNo=26EC26&lang=EN
• https://apps.sfc.hk/edistributionWeb/api/circular/list-content/circular/doc?refNo=23EC47&lang=EN
• https://apps.sfc.hk/edistributionWeb/api/circular/list-content/circular/doc?refNo=23EC66&lang=EN
• https://www.hkma.gov.hk
• https://resourcehub.bakermckenzie.com/en/resources/global-financial-services-regulatory-guide/asia-pacific/hong-kong/topics/who-regulates-banking-and-financial-services-in-your-jurisdiction
• https://www.imf.org/external/np/rosc/hkg/index.htm
• https://www.lanturn.com/hk/blog/a-comprehensive-guide-to-sfc-licences-in-hong-kong
• https://www.sfc.hk/en/
• https://www.sfc.hk/en/alert-list/3461
• https://www.sfc.hk/en/alert-list/3460
• https://www.inlandrevenue.gov.hk/tc/html/services/financial_services_and_taxes/tax/types_of_tax/capital_gains
• https://www.basiclaw.gov.hk/filemanager/content/en/files/basiclawtext/basiclawtext_doc30.pdf
• https://apps.sfc.hk/edistributionWeb/api/circular/list-content/circular/doc?refNo=23EC27&lang=EN
• https://www.hkma.gov.hk/eng/key-functions/banking/banking-regulatory-and-supervisory-regime/digital-banks/
• https://www.sfc.hk/-/media/EN/files/COM/Speech/VA-spot-ETF-listing-ceremony-speech_Eng-final.pdf
• https://apps.sfc.hk/edistributionWeb/api/circular/list-content/circular/doc?refNo=26EC31&lang=EN
• https://www.sfc.hk/en/About-the-SFC/Corporate-governance/Performance-pledges
• https://www.sfc.hk/en/Regulatory-functions/Intermediaries/Licensing/Ongoing-obligations
• https://www.jfiu.gov.hk/en/str.html
• https://www.sfc.hk/en/Regulatory-functions/Enforcement/Disciplinary-proceedings
• https://www.hkma.gov.hk/eng/key-functions/banking/anti-money-laundering-and-counter-financing-of-terrorism/fatf-related-statments-update/
• https://www.21analytics.co/blog/fatf-crypto-travel-rule-status-2026/
• https://www.fsa.go.jp/en/news/2025/20250625/01.pdf