Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the SFC or HKMA decision, including banking and payment rails.
Get a crypto license in Hong Kong.
Asia's institutional gateway licenses exchanges through the SFC, put stablecoins under HKMA licensing in 2025, and published a roadmap - ASPIRe - for everything else. Retail access included, standards to match.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Crypto licenses obtainedlicenses obtained
Updated
Hong Kong in brief
The institutional gateway that chose regulation over prohibition.
Hong Kong made its bet in 2023: virtual-asset trading platforms are licensed by the SFC - with retail access allowed under strict suitability, custody and insurance rules, and the list of licensed VATPs has grown steadily since. In August 2025 the Stablecoins Ordinance took effect, making the HKMA the licensing authority for fiat-referenced stablecoin issuers, one of the first such regimes anywhere. And the SFC's ASPIRe roadmap, published in February 2025, lays out the next wave: OTC dealing, custody licensing, derivatives and margin - twelve initiatives, sequenced.
The result is a jurisdiction where the perimeter is explicit and expanding on schedule. Standards are high - paid-up capital, 98% cold storage, insurance, responsible officers, but the prize matches: mainland-adjacent liquidity, institutional banking, a 16.5% profits tax with an 8.25% first band, and no capital gains tax at all.
Asia's institutional gateway: SFC-licensed trading platforms with retail access, and - since 1 August 2025 - HKMA-licensed stablecoin issuers.
The ASPIRe roadmap says what comes next: OTC and custody licensing. High standards, published schedule, 16.5% profits tax, no CGT.
Licence types
The VATP licence - and the new stablecoin regime.
Two regimes run in parallel: the SFC licenses virtual-asset trading platforms under the AMLO and SFO frameworks, and the HKMA licenses fiat-referenced stablecoin issuers under the Stablecoins Ordinance in force since 1 August 2025.
Two regimes: the SFC's VATP licence for platforms; the HKMA's stablecoin licence since August 2025.
01 - SFC · VATP
Virtual asset trading platform
The exchange licence: dual AMLO/SFO licensing for platforms serving Hong Kong, retail access permitted under suitability, custody and insurance safeguards.
The exchange licence: dual AMLO/SFO licensing for platforms serving Hong Kong, retail access permitted under suitability, custody and insurance safeguards.
- ✓Centralised spot trading for retail and PI clients
- ✓Paid-up capital HK$5,000,000 + liquid capital
- ✓98% of client assets in cold storage
- ✓Insurance / compensation arrangements required
- ✓Two responsible officers, one Hong Kong-resident
- ✓9-12+ months with SFC engagement
02 - HKMA · STABLECOINS
In force since 1 Aug 2025Stablecoin issuer licence
The Stablecoins Ordinance makes the HKMA the licensing authority for fiat-referenced stablecoin issuers. Full backing, redemption at par, local substance.
Full backing, par redemption, HK$25M capital. Among the world's first complete issuer regimes.
- ✓Fiat-referenced stablecoin issuance in or into HK
- ✓Full reserve backing in high-quality liquid assets
- ✓Redemption at par, disclosure and audit duties
- ✓Paid-up capital HK$25,000,000 baseline
- ✓HKMA supervision and fit-and-proper control
- ✓The first licences issued from 2025-26
Costs and timelines are confirmed for your case before any work begins. VATP capital runs from HK$5M paid-up plus liquid-capital requirements; stablecoin issuers from HK$25M. Regulator fees and third-party costs are itemised in your quote.
Why Hong Kong
Explicit rules, expanding on a published schedule.
The framework combines the AMLO VASP regime and SFO licensing for platforms, the Stablecoins Ordinance for issuers, and the ASPIRe roadmap for what comes next. A rare case of a regulator telling the market its plans in advance.
✓
A licence with retail access
Hong Kong VATPs may serve retail investors. Under suitability testing, token due diligence and custody rules, which most Asian rivals still do not allow. The addressable market is the point.Safeguarded retail. Most Asian rivals still say no.
✓
Stablecoins, first-mover
The Stablecoins Ordinance took effect 1 August 2025. Among the world's first complete issuer regimes: full backing, par redemption, HKMA licensing. Issuers get certainty competitors lack.Complete issuer regime in force since Aug 2025.
✓
ASPIRe: the roadmap is public
Twelve initiatives across Access, Safeguards, Products, Infrastructure and Relationships. OTC dealing and custody licensing included. You can plan two years ahead because the SFC published its plan.Twelve initiatives. Plan two years ahead.
✓
Institutional banking works
Licensed platforms and issuers get accounts. Hong Kong's banks follow the regulator's lead, and the HKMA has told them to. In Asia, that sentence is rarer than it sounds.Banks follow the HKMA's lead on licensed firms.
✓
The tax line is short
Profits tax at 16.5% (8.25% on the first HK$2M), no capital gains tax, no VAT. Long-held investment gains are simply outside the net.16.5%/8.25%, no CGT, no VAT.
✓
The China-adjacent seat
Mainland liquidity, family offices and the deepest institutional bench in Asia. Hong Kong remains the seat from which both worlds are served.Mainland liquidity and Asia's deepest bench.
How it compares
How Hong Kong differs from other hubs.
Hong Kong pairs Singapore-grade credibility with retail market access. At Singapore-grade cost and timeline. The real comparison is which market you actually need.
Hong Kong vs other jurisdictions
| Feature |  Hong Kong | Other jurisdictions |
|---|---|---|
| Retail access | Yes - with safeguards | Often institutional-only |
| Stablecoin regime | HKMA licence since 2025 | Patchwork or pending |
| Roadmap | ASPIRe - published | Case-by-case evolution |
| Licensing speed | 9-12+ months | 4-9 months elsewhere |
Retail access
Hong KongYes - with safeguards
Other jurisdictionsOften institutional-only
Stablecoin regime
Hong KongHKMA licence since 2025
Other jurisdictionsPatchwork or pending
Roadmap
Hong KongASPIRe - published
Other jurisdictionsCase-by-case evolution
Licensing speed
Hong Kong9-12+ months
Other jurisdictions4-9 months elsewhere
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Hong Kong | SFC VATP · HKMA stablecoins | 16.5% profits tax, no CGT | High bar, retail allowed |
 Singapore | MAS DPT (SPI / MPI) | 17% CIT, no CGT | Selective, 9-12+ months |
 UAE (Dubai) | VARA VASP by activity | 9% CIT · 0% personal | Substance-heavy, 3-9 months |
 United Kingdom | FCA MLR → FSMA (2027) | 25% CIT | Exacting AML bar, 6-12 months |
Hong KongLicense typeSFC VATP · HKMA stablecoins
Taxation16.5% profits tax, no CGT
RequirementsHigh bar, retail allowed
SingaporeLicense typeMAS DPT (SPI / MPI)
Taxation17% CIT, no CGT
RequirementsSelective, 9-12+ months
UAE (Dubai)License typeVARA VASP by activity
Taxation9% CIT · 0% personal
RequirementsSubstance-heavy, 3-9 months
United KingdomLicense typeFCA MLR → FSMA (2027)
Taxation25% CIT
RequirementsExacting AML bar, 6-12 months
Before you apply
Requirements for a Hong Kong licence.Requirements for a Hong Kong licence.
The SFC and HKMA assess on substance: capital that is real, custody that is provable, and officers who can defend the framework in person. The checklist below is what a credible file contains.
01
Hong Kong entity. Incorporated locally with a real office and operations in the city.
02
Paid-up capital. HK$5,000,000 for a VATP plus ongoing liquid-capital requirements; HK$25,000,000 baseline for stablecoin issuers.
03
Responsible officers. At least two ROs for a VATP, at least one ordinarily resident in Hong Kong, personally accountable.
04
Fit & proper control. Clean records and source-of-wealth evidence for controllers and key personnel.
05
Custody architecture - 98% of client assets in cold storage, segregated in an associated entity, with insurance or compensation arrangements.
06
Token admission framework. Due-diligence and listing criteria the SFC will test token by token.
07
Retail safeguards. Suitability assessment, risk profiling and exposure limits where retail is served.
08
AML/CFT framework. AMLO-grade KYC, monitoring, STRs to the JFIU and travel-rule compliance.
09
Technology and resilience. External assessments of security, wallets and systems, pre- and post-licensing.
10
For issuers: reserve management, par-redemption mechanics, disclosure and audit under the Stablecoins Ordinance.
11
Financial audits, business plans and projections both regulators can test.
01
Hong Kong entity with a real office.
02
Capital. HK$5M VATP · HK$25M issuers.
03
Two responsible officers, one resident.
04
Fit & proper controllers with source of wealth.
05
98% cold storage via an associated entity.
06
Token due-diligence and admission framework.
07
Retail safeguards. Suitability and limits.
08
AMLO-grade AML: KYC, STRs, travel rule.
09
External technology assessments.
10
Issuers: reserves, par redemption, audits.
Reflects the AMLO/SFO regimes, the Stablecoins Ordinance and SFC/HKMA practice as of 2026. With OTC dealing and custody licensing arriving per the ASPIRe roadmap.AMLO/SFO, Stablecoins Ordinance and SFC/HKMA practice, 2026. ASPIRe scopes arriving.
How it works
From first call to an SFC or HKMA licence.
01
Perimeter and scoping
VATP, stablecoin issuer, or a coming ASPIRe scope. Mapped against your model and fixed in writing.VATP, issuer or coming scopes. Fixed in writing.
02
Entity and substance
Hong Kong company, capital, responsible officers and the custody-entity structure the rules require.Company, capital, ROs, custody entity.
03
The application file
Business plan, custody and token frameworks, AML pack and external technology assessments.Plans, frameworks and external assessments.
04
Regulator review
SFC or HKMA engagement, clarification rounds and interviews. Typically 9-12+ months for a VATP.9-12+ months of rounds and interviews.
05
Launch and ongoing compliance
Ongoing reporting, annual reviews, token-admission governance. We keep the licence healthy while you run the business.Reporting, reviews, token governance.
Quick facts
RegulatorsSFC · HKMA
VATP capitalHK$5M + liquid
Stablecoin capitalHK$25M baseline
Cold storage98% of client assets
In practice9-12+ months
Retail accessYes - with safeguards
RoadmapASPIRe (Feb 2025)
LanguageEnglish throughout
Timeframes assume a complete file; external assessments and custody build-out usually set the critical path.
On the ground in Hong Kong
Run from our Hong Kong office.
Prifinance - Hong Kong
Hong Kong
Hong Kong
01
Scoping first
VATP, stablecoin issuer or an ASPIRe-wave licence ahead. We test your model against the actual perimeter before any fees.VATP, issuer or an ASPIRe wave. Tested before fees.
02
Hong Kong entity and substance
Local incorporation, office, resident responsible officers and the hiring plan the SFC interviews behind.Incorporation, office, resident ROs, hiring plan.
03
The application file
Business plan, custody and token-admission frameworks, AML and technology assessments. Drafted to SFC circulars and defended round by round.Custody, token and AML frameworks - defended.
04
Banking and beyond
Accounts with banks that follow the HKMA's lead on licensed firms, and parallel EU or UAE licences where the strategy calls for both.HKMA-following banks; parallel EU/UAE where needed.
We also have offices in
Tallinn
Estonia
Roseni 13
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
London
United Kingdom
7 Bell Yard
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Istanbul
Turkey
Perpa Ticaret Merkezi, A Blok
Good to know
Taxation of crypto companies in Hong Kong.
Territorial, simple and short: profits tax on Hong Kong-sourced trading profits, nothing on capital gains, no VAT. With published guidance on when crypto gains count as trading.
Profits tax 16.5%
The standard rate, with 8.25% on the first HK$2,000,000 under the two-tier regime. Trading margins and fees taxed after ordinary deductions.8.25% on the first HK$2M - two-tier regime.
No capital gains tax
Gains on long-held investments - including tokens. Are simply outside the net. The trading-versus-investment line follows IRD guidance and the badges of trade.Investment gains outside the net; trading is taxed.
Territorial source
Only Hong Kong-sourced profits are taxed; offshore-sourced profits can fall outside the net entirely, subject to the refined FSIE rules for passive income.Only HK-sourced profits taxed; FSIE rules apply.
No VAT or sales tax
Hong Kong levies no VAT, GST or sales tax. Exchange spreads and fees stay clean without exemption gymnastics.Spreads and fees stay clean.
No withholding on dividends
Dividends flow to shareholders without Hong Kong withholding. Holding structures stay simple.Simple holding structures.
CARF on the way
Hong Kong has committed to the crypto-asset reporting framework with exchanges from 2028. Build the data plumbing now, not later.Build the data plumbing now.
Tax summary
Profits tax16.5% · 8.25% first band
Capital gains taxNone
VAT / GSTNone
Dividend withholdingNone
Source principleTerritorial
CARFExchanges from 2028
Tax treaties50+
*Figures as of 2026. The trading-versus-investment line drives outcomes. We document positions before the IRD asks.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Hong Kong entity, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, licensed platform.
Follow Prifinance
Active across our channels.
Hong Kong · SFC / HKMA
Launch your crypto project in Asia with expert support.
Full-service assistance - from Hong Kong incorporation to the VATP or stablecoin licence and banking.
Get a consultation →Free legal opinion
Is Hong Kong the right fit for your project?
Our legal team will analyze your case at no cost and provide a written legal opinion: which licence, structure, or sequencing fits your business.
Written assessment within 2-5 business days
Request a free conclusion →FAQ
The Hong Kong crypto licence: the practical answers.
What licence does a crypto exchange need in Hong Kong?+
A VATP licence from the SFC - dual licensing under the AMLO and SFO regimes for platforms serving Hong Kong, with retail access permitted under suitability, custody and insurance safeguards.
What does the stablecoin regime require?+
Since 1 August 2025 fiat-referenced stablecoin issuers need an HKMA licence under the Stablecoins Ordinance: full reserve backing in high-quality liquid assets, redemption at par, disclosure and audit duties, and HK$25,000,000 baseline capital.
What capital does a VATP need?+
HK$5,000,000 paid-up capital plus ongoing liquid-capital requirements - and, in practice, the balance sheet to fund insurance, custody infrastructure and the compliance bench the SFC expects.
How long does licensing take?+
Realistically 9-12 months or longer for a VATP: external assessments, custody build-out, clarification rounds and interviews. Stablecoin issuer timelines are comparable as the first cohort moves through.
Can I serve retail investors?+
Yes - the distinguishing feature of the regime. Retail access requires suitability assessment, knowledge testing, exposure limits and admission of tokens that pass due-diligence criteria.
What custody rules apply?+
98% of client virtual assets in cold storage, held through an associated entity, with insurance or compensation arrangements covering the hot remainder - provable, audited, inspected.
What is ASPIRe?+
The SFC's February 2025 roadmap - twelve initiatives across Access, Safeguards, Products, Infrastructure and Relationships, including OTC dealing and custody licensing regimes. It tells you what becomes licensable next.
How are companies taxed?+
Profits tax at 16.5% with 8.25% on the first HK$2M, territorial source, no VAT, no withholding on dividends, and no capital gains tax on long-held investments.
And founders personally?+
Salaries tax capped effectively at 15-16%, no CGT on investment gains, no tax on dividends. The badges-of-trade line decides trading versus investment - we document it.
Hong Kong or Singapore?+
Both are Asia's quality flags. Singapore is more selective and institutional-first; Hong Kong offers retail access, the stablecoin first-mover regime and mainland adjacency. Groups with Asia ambitions increasingly hold both - sequenced.
What licence for an exchange?+
SFC VATP - dual AMLO/SFO, retail allowed with safeguards.
Stablecoin rules?+
HKMA licence since Aug 2025 - full backing, par redemption, HK$25M.
VATP capital?+
HK$5M paid-up plus liquid capital and insurance.
How long?+
9-12+ months - assessments set the path.
Retail?+
Yes - suitability, limits, vetted tokens.
Custody?+
98% cold storage, associated entity, insured.
ASPIRe?+
The SFC's public roadmap - OTC and custody next.
Company taxes?+
16.5%/8.25%, territorial, no VAT.
Founder taxes?+
No CGT; salaries tax ~15%; no dividend tax.
HK or Singapore?+
Retail + stablecoins vs selectivity - many hold both.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
“As a software development crew at FewMoreTaps OÜ, we've had the pleasure of working with Prifinance on some key financial moves.First of all, navigating the world of corporate banking and finance can be a maze, but Prifinance made it feel like a walk in the park. They helped us set up a corporate bank account without the hassle of jumping on a plane or drowning in paperwork. Everything was done remotely, smoothly…”
Google
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Google
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Google
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Get a free legal opinion on your project - our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.Free legal opinion: which Hong Kong licence fits your project and what it will cost.
✓Written legal opinion within 2-5 business days - free of charge✓A clear recommendation on the right licence scope, not a sales pitch✓Transparent fixed fees, confirmed up front✓EN · RU · ES speaking team
Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of the SFC or the HKMA or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.