Licensing for crypto and fintech companies in Hong Kong
Corporate
Hong Kong has become one of the world’s leading international hubs for digital assets and fintech. Balanced regulation, government support, advanced infrastructure, and its status as a global financial center make it an ideal jurisdiction for Web3, DeFi, and crypto projects. Industry leaders such as Crypto.com, HashKey, The Sandbox, OKX, Animoca Brands, and others are already established here.
Contact us
Why do companies increasingly choose Hong Kong for crypto and fintech business development?
Clear and modern regulation
Hong Kong’s legal system is highly valued worldwide for transparency and effective enforcement, providing companies with confidence and protection. The main regulator, the Securities and Futures Commission of Hong Kong (SFC), issues clear guidelines for virtual asset companies.
Government support
In 2023, the government launched a task force on Web3 and digital assets to promote the sector.
Innovative ecosystem
Hong Kong has a rapidly developing innovation ecosystem: incubators, accelerators, and research centers actively support startups and their growth. This environment fosters the adoption of new technologies and business models.
Favorable tax policy
Competitive tax rates and a well-designed tax system provide financial benefits for companies following a lean business model. Hong Kong’s tax policy is aimed at encouraging investment and innovation.
Bilingual jurisdiction in Asia
English and Chinese are both official languages in Hong Kong, making it easier for businesses to navigate legal and regulatory requirements and to manage operations. All laws and regulations are available in both languages.
“In a multi-layered regulatory environment for crypto and fintech, key functions are clearly divided among three main bodies: SFC, HKMA, and the Insurance Authority. This approach covers both traditional financial instruments and innovative digital assets, providing businesses with a high level of legal certainty and protection.” Alexandra Kurdiumova Co-founder, Senior Partner
Types of activities subject to licensing
Crypto and fintech companies must obtain licenses when engaging in the following operations:
- asset management in virtual assets
- operation of centralized trading platforms
- custody services for digital assets
- investment advice on virtual assets
- conducting ICO/IEO
- provision of algorithmic trading systems and automated solutions
“Regulation applies not only to entities registered in Hong Kong but also to companies providing services to Hong Kong citizens and residents abroad.” Alexey Kononov Associate
Types of licenses and regulatory regimes
Virtual Asset Service Provider (VASP) license from the Securities and Futures Commission (SFC)
Applies to companies providing services with virtual assets that are not securities (e.g., utility tokens).
Compliance requirements under AML/CTF include:
- implementation of KYC systems
- transaction monitoring
- appointment of compliance officers and internal control functions
Regulated under AMLO – the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
Type 1 license – dealing in securities
Applies to companies dealing with virtual assets classified as securities (security tokens).
Regulated under SFO – the Securities and Futures Ordinance.
Type 7 license – providing automated trading services
“Since 1 June 2023, crypto companies providing services with virtual assets (non-security tokens) must obtain a VASP license. SFC recommends obtaining licenses under both AMLO and SFO to avoid disruptions in case tokens are reclassified.” Valeria Gziryan Senior Associate
Process of obtaining a license in Hong Kong
- Consultation with an expert We offer expert consultations to help you navigate Hong Kong’s virtual asset regulatory landscape.
- Analysis of business model and applicable regulatory regime We analyze your business model, determine the legal nature of tokens (security / utility), and assess the applicable regime. Risk assessment is also key to ensuring future activities comply with regulatory requirements.
- Preparation of documents Our team helps prepare all necessary documents for licensing in Hong Kong, including: business plan, description of technical infrastructure, AML/CTF policies, risk management mechanisms, ownership structure and key personnel details
- Filing the application and documents The application is submitted to the SFC along with supporting documents and required fees. It must include a detailed description of operations, risk management policies, and cybersecurity measures.
- Initial review SFC checks the application for completeness and may request additional information or clarifications. We handle all communications with regulators, ensuring smooth interaction and full compliance.
- Assessment and due diligence A comprehensive review of the company and key personnel, including AML/CTF compliance, is conducted.
- Entry into the register and license issuance If approved, the regulator enters the company into the public register of VASP or SFO licensees and issues the license.
Typically, licensing takes 4–6 months from the date of submission of a complete package. The timeline may vary depending on:
- complexity of the corporate structure
- involvement of foreign beneficiaries
- volume of regulator’s clarifications
Advantages of obtaining a crypto license in Hong Kong with Futura Law
- Comprehensive support We manage the entire process – from selecting the right license and preparing documents to regulator interaction and implementing AML/CTF procedures.
- Minimization of rejection risks We conduct a preliminary audit of the project, identify potential gaps, and resolve them before filing, significantly increasing the chances of approval.
- Integration into Hong Kong’s business environment We help establish relationships with banks, investors, and partners, and provide tax and corporate support for an efficient business launch in the region.
- Team with strong expertise in Asia We have a stable presence in Hong Kong – with an office and local staff – enabling us to account for local specifics and effectively support projects in English and Chinese without barriers, with precision at every stage.
How does it work
Who will support your company in Hong Kong?
Ready to discuss your project?
Leave a request and get:
- a personal consultation with analysis of your situation, goals, and suitable tools
- a list of required documents and a step-by-step action plan with deadlines and costs
- answers to all your questions about launching and supporting crypto and fintech business in Hong Kong