Hong Kong’s Crypto Push Raises the Bar for Compliance
According to a recent article in The Block, Hong Kong is accelerating its push to become a global digital-asset hub, and regulatory expectations are rising just as quickly. Developments around stablecoin licensing, crypto trading supervision, and tokenization signal a clear shift from policy design to active oversight. For firms operating in or connected to Hong Kong’s markets, crypto compliance is no longer theoretical. It is operational.
Speaking at the World Economic Forum in Davos, Hong Kong Financial Secretary Paul Chan reaffirmed that Hong Kong’s crypto framework is intended to be responsible and sustainable, with the first batch of stablecoin issuer licenses expected in the first quarter. The city’s stablecoin regime, passed in 2025, requires issuers to meet strict standards on reserves, redemption, and risk management.
Licensing Is Live and Expanding
Hong Kong has already rolled out a licensing regime for crypto trading platforms, moving regulation from intent to enforcement. Under the supervision of the Securities and Futures Commission, 11 crypto trading platforms have been approved to date, including OSL, HashKey, and Bullish.
This milestone matters for compliance teams. Once crypto trading platforms are licensed, expectations quickly extend beyond the platforms themselves. Firms are expected to demonstrate how they supervise crypto activity, manage conflicts of interest, and monitor employee trading behavior across both traditional securities and digital assets.
Stablecoins and Tokenization Broaden the Compliance Perimeter
Hong Kong’s crypto strategy also includes tokenization and digital money. In late 2025, the Hong Kong Monetary Authority launched Project Ensemble, a pilot testing real-value transactions using tokenized deposits and digital assets with major banks and asset managers.
At the same time, regulators are seeking feedback on additional licensing regimes for crypto asset dealing, advisory, and management services. Together, these initiatives expand the scope of activities subject to regulatory scrutiny and increase pressure on firms to demonstrate effective, ongoing supervision.
StarCompliance Take: Why Employee Crypto Trading Compliance Matters More Than Ever
As crypto regulation matures, regulators are paying closer attention to employee trading, personal holdings, and the potential misuse of material nonpublic information. Crypto markets operate around the clock; prices move rapidly, and employees can trade across centralized and decentralized venues, often outside traditional compliance workflows.
Manual policies and periodic attestations struggle to keep pace with this environment. Firms need automated controls that reflect how crypto markets function and how employees trade.
How StarCompliance Helps Firms Stay Ahead
StarCompliance (Star) helps firms operationalize crypto compliance by automating oversight of both firm and employee crypto activity. The platform enables compliance teams to monitor crypto trading alongside traditional securities within a single supervisory framework.
With Star’s Crypto Dealing & Tokenized Asset Compliance Solutions, firms can automate employee crypto trade disclosures and approvals, monitor personal crypto transactions and holdings, identify conflicts of interest and suspicious trading patterns, and maintain clear audit trails aligned with evolving regulatory expectations.
As Hong Kong continues to advance its crypto licensing and tokenization agenda, firms that rely on manual processes face growing risk. Automated crypto compliance tools are becoming essential for meeting supervisory expectations, protecting firm reputation, and supporting sustainable participation in regulated digital-asset markets.
Crypto Regulations Decoded
