Crypto Regulations in Hong Kong 2025

In 2025, Hong Kong obtained its place as one of the main crypto hubs around the world, beating several world financial centers. The country is also known as the most “ready for crypto” location in the world in 2025. It is also considered to be the most friendly cryptographic city in the world, offering the most structured and most safe digital trading environments.

Hong Kong has widened the role of cryptocurrency in its economy by authorizing the exchanges of crypto and by authorizing the crypto to investments. In addition, it plans to allow the list of ETF Bitcoin and Etheum in the economy.

Notable regulatory cryptography developments in Hong Kong 2025

August 1, 2025 – The stable order has entered into force

• Hong Kong Monetary Authority (HKMA) will begin to accept stable license requests from August 1. Investors will now be able to buy and sell virtual assets only on approved platforms.

• This decision aims to regulate the stablecoins of the Fiat and promote digital asset activities in the country. The guidelines cover the supervision of the approved transmitters, as well as the requirements of the LMA and the CTF.

July 5, 2025 – Hong Kong emits a third tokenized green link

• The government is preparing to launch its third green tokenized obligation while introducing a penalty of stamp duties for the funds negotiated on the stock market (ETF).

• Financial secretary Christopher Hui has verified that the emission of bonds will be a continuation of two old lots of token green bonds at the end of 2023 and 2025.

June 27, 2025 – Extension of the Hong Kong virtual asset regulation regime

• The Financial Services and the Treasury Financial Bureau of Hong Kong (FSTB) and the Titters and Future Commission (SFC) have jointly drafted documents to increase the country’s regulatory regime for virtual assets.

• It included a proposal for virtual asset guards, licenses, fighting money laundering and other risk mitigation protocols.

May 21, 2025- Stablecoin invoice

• Expand its Crypto license framework to cover the stable stables supported by Fiat.

• Created a formal license granting regime for stablecoin issuers (FRS) referred by Fiat. It aims to create an ecosystem of digital trusted assets with a real impact.

February 19, 2025 – Roadmap for the digital asset framework

• The roadmap for access, guarantees, products, infrastructure and relationships (Aspire) for virtual assets (VA).

• It aims to update financial infrastructure to take advantage of Blockchain technology and strengthen executives of compliance and products.

January 16, 2025 – VATP license

• New candidates for a virtual asset trading platform license (VATP) will be subject to an overly reworked and accelerated external evaluation process.

• This approach establishes a tripartite agreement between the SFC, the VATP applicant and the external assessor.

AML and CFT regulations

• Apart from that, Hong Kong has updated the anti-flowage order (AML) to align with the recommendations of the Financial Action Working Group (FATF) 15. According to this approach, the VALPS fall under AML and CFT regulations.

• This large approach to SFC surveillance imposes sanctions on violations, such as the falsification of files can lead to fines up to HKD (Hong Kong dollar) 1,000,000 and imprisonment.

Who are the regulators of cryptography in Hong Kong?

SECURITIES AND FUTURES Commission (SFC) –

The main cryptocurrency regulatory organization in Hong Kong is to ensure that cryptographic companies and all digital asset platforms follow the directives follow the AML and CFT regulations.

The monetary authority of Hong Kong (HKMA) –

Supervise the large financial stability linked to cryptographic trading and regulates stablecoin, ensuring that transmitters obtain a license and meet strict requirements. It is the central banking institution which includes the management of reserves and the segregation of the customer fund.

Virtual asset trading platforms (VATPS) –

Functions in the regulation of cryptography by protecting investors from cyber-species and ensuring LMA and CFT. Its main role is to supervise the license by the SFC.

Hong Kong cryptography taxchart in 2025

• Capital tax: No gain in capital tax is imposed on cryptographic profits, which specifies that cryptographic investments are generally free.

• Income tax: People who are engaged in cryptographic companies on a frequent professional basis may have to pay income tax, because their cryptography activities will be considered an income.

• Tax rate: Profits classified as cryptographic activities are subject to income tax from 15% to 16.5%. The distinction between free and taxable activity depends on the frequency of transactions, the period of detention and the intention.

• Franchise activities: Occasional long -term assets are generally exempt from tax, while frequent exchanges with the intention of generating profits are probably subject to income tax. No additional tax is imposed, such as the value added tax (VAT) or the tax on goods and services (TPS).

Cryptographic tax summary table

Crypto license in Hong Kong 2025

All virtual asset trading platforms (VASP) are required to obtain a license in commission of securities and future (SFC). Since 2021, the agency has forced a license requirement which only lists high liquidity tokens.

License holders must follow the anti-flowage procedures (AML) and know the procedures of your customers (KYC), with strict compliance with risk management, regular audits, transactions monitoring, compliance of sanctions and the travel rule. SFC has also shared a list of exchanges which are properly authorized with the agency to operate legally.

Adoption of cryptography in Hong Kong 2025

• About 5.25% of the population of Hong Kong actively use the cryptocurrency. SFC has authorized 10 virtual active ingredient trading platforms, which makes it feasible for investors and users.

• About 393,500 people in Hong Kong use crypto, which makes it common. It is one of the top five convivial cities in the world.

• Crypto Holdings: No official disclosure yet. Policies prioritize priority to the full regulatory regime for virtual assets and stalls to find a balance between investor protection, financial stability and innovation.

Summary table of adoption and cryptography assets in Hong Kong.

End note

The cryptocurrency thrives in Hong Kong with an improved set of regulations in Hong Kong. The capital -free approach to capital has attracted more people to use digital assets in Hong Kong. In 2025, average turnover per user on the cryptocurrency market was estimated at US $ 174.9. Crypto experts say that with new regulations, the future cryptocurrency market should reach 393.5K of users in Hong Kong. Hong Kong has proven that stability and growth of cryptocurrency with safety and safety are certainly possible.

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