Hong Kong is one of the Asian countries that showed a great degree of openness towards the fintech industry’s development. Cryptos and blockchains have benefited from its favorable business environment, and the number of startup companies in this field has grown in recent years. However, the regulatory environment has undergone a fundamental and strict transformation since 2023, positioning Hong Kong as a stand-out from other Asian countries due to its mandatory and robust licensing regime aimed at establishing a global Virtual Asset (VA) Hub.
Blockchain & Cryptocurrency Business in Hong Kong
Cryptocurrency and blockchain businesses in Hong Kong have leveraged technology to create a new economy within a short period of time, which led to the rise of many new opportunities. Digital currencies didn’t have a positive reputation before. Initially, the cryptocurrency business in Hong Kong had a negative impact on the government and market. However, cryptocurrency has earned more legitimacy over the years and Hong Kong has now adopted a stronger stance on this currency. It took over the world by storm. No one would have ever imagined the possibility of the combination of decentralized systems, zero conventional banking fees, and peer-to-peer currency ownership and transfer.
About Cryptocurrencies and Blockchain technology (DLT – Distributed Ledger Technology)
Bitcoin was the first cryptocurrency to enter the market. It introduced an effective way to transfer value over the internet by relying on peer-to-peer and distributed verification. People could never have imagined the possibility of the cooperation of decentralized systems, non-traditional banking fees, and peer-to-peer (P2P) currency ownership and transfer that could potentially take over the world.
Ever since bitcoin was introduced, there has been a blockchain system available and the emergence of blockchain-based projects. The growth of this technology has resulted in opportunities used by many public and private companies. Hence, there is an increase in the overall position of Hong Kong in business, technology, and law.
Blockchain or DLT-focused companies now estimate a much larger share of Hong Kong’s Fintech startup sector. This is the significant growth that may be attributed to a positive approach taken towards the blockchain initiatives.
All cryptocurrency trading platforms running in Hong Kong or targeting regional investors will be required to apply for an SFC license. Blockchain companies in Hong Kong or distributed ledger technology (DLT) firms have been dominating Hong Kong’s startup sector. Blockchain experts can also qualify for incentives when applying for Hong Kong’s Quality Migrant Admission Scheme (QMAS). The QMAS is a program that lets applicants settle down in the city before having to look for employment. This has reportedly motivated many blockchain specialists to move to Hong Kong.
The Modern HK Business Account: Online-First Financial Solutions
For a blockchain or crypto-adjacent company (e.g., a software developer, Web3 marketing firm, or a non-licensed entity), securing a corporate bank account is the first major hurdle. Traditional Hong Kong banks have historically been cautious with the sector. Therefore, online-first platforms, digital banks, and global payment gateways are now the fastest and most reliable options for opening a new business account.
Online-First & FinTech Platforms
These platforms offer quick, remote onboarding without the traditional requirement for in-person branch visits, which is ideal for international founders and digital-focused businesses.
| Platform | Best For | Account Opening Time | Key Features |
|---|---|---|---|
| Airwallex | High-volume international sales, e-commerce, high-growth startups | Fully remote, as fast as 48 hours for eligible HK companies. | Multi-currency accounts (20+ currencies), local receiving accounts (USD, EUR, GBP, etc.), low FX rates, and no account opening or monthly fees. |
| Wise Business | SMEs, contractors, businesses prioritizing low-cost, mid-market FX rates. | Fully remote, typically 4-7 working days for verification. | Local account details in 9+ major currencies, transparent transaction fees, ideal for paying global teams and receiving funds from platforms like Stripe/PayPal. |
| DBS Bank (Digital) | HK registered companies with a director/owner holding an HK Permanent ID or Mainland China ID. | Fully digital via the DBS IDEAL App, as fast as 1 working day for eligible applicants. | Strong stability, local banking infrastructure, and the fastest digital path into a major commercial bank for local residents. |
Essential E-Commerce & Payment Gateways
These tools are crucial for receiving payments but require a valid HK corporate bank account (often from the FinTech platforms above) for fund settlement.
- Stripe: Ideal for e-commerce, SaaS, and subscription models due to its robust API and extensive integration capabilities. It facilitates online card payments globally, settling funds into your nominated HK corporate account.
- PayPal: Excellent for simple invoicing, peer-to-peer business payments, and high consumer trust. It is easy to set up and widely accepted globally.
Hong Kong Cryptocurrency Regulation
After cryptocurrencies gained popularity, the government is finally setting the right regulations and tax rules. Undoubtedly, some countries banned these coins temporarily until they know how to regulate this trading effectively. But most of them have actually gained the grip in setting up regulations.
The regulatory landscape has moved from voluntary to mandatory licensing, creating one of the world’s most rigorous regulatory environments for centralized platforms.
Mandatory VASP Licensing (SFC)
- VATP Exchanges (Centralized): All centralized Virtual Asset Trading Platforms (VATPs) operating in Hong Kong or marketing to Hong Kong investors must obtain a license from the Securities and Futures Commission (SFC) under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), effective June 1, 2023. This is a dual licensing regime (AMLO + SFO Types 1/7 if offering security tokens).
- Retail Access: Licensed exchanges are now allowed to offer trading services for certain large-cap Virtual Assets (like Bitcoin and Ethereum) to retail investors, provided they meet strict protection requirements.
- ETFs: Hong Kong has authorized spot and futures-based Virtual Asset Exchange-Traded Funds (ETFs) for public offering, marking a major step toward institutional acceptance.
New Regulatory Regimes (HKMA & CCE)
- Stablecoins (HKMA): The Hong Kong Monetary Authority (HKMA) has introduced a forthcoming licensing regime (expected 2025/2026) for Fiat-Referenced Stablecoin (FRS) issuers. Issuers of HKD-referenced stablecoins, or those actively marketing FRS in Hong Kong, will require a license and must maintain 100% reserve backing.
- VA OTC Trading (CCE): Due to fraud cases, the government is introducing a new licensing regime for Virtual Asset Over-the-Counter (VA OTC) service providers, to be regulated by the Commissioner of Customs and Excise (CCE), focusing on AML/KYC compliance in this sector.
Opening a Cryptocurrency Company in Hong Kong
Blockchain businesses and cryptocurrency investment firms have entered the market. Amongst other Asian countries, Hong Kong stands out because of its commitment to a favorable regulatory and tax regime for compliant businesses.
Why is opening a cryptocurrency company in Hong Kong beneficial?
Below are a few points that will show the advantages of opening a Cryptocurrency company in Hong Kong.
- The city has many investors interested in these fields that represent the evolution of the financial sector.
- Hong Kong has an attractive tax regime: No Capital Gains tax, No Dividend Tax, No sales tax/VAT tax, and No inheritance tax.
- Hong Kong is one of the most developed financial centers across Asia. The simple rules and regulations of Hong Kong will help in building a cryptocurrency business smoothly.
- You can always open a cryptocurrency business in Hong Kong as it is the most preferred location due to its regulations and other benefits.
All investors who want to open a cryptocurrency company in Hong Kong must keep in mind to follow various guidelines presented by the experts in Hong Kong. Understanding Hong Kong cryptocurrency regulation can be easy, but entering into the Hong Kong blockchain ecosystem can be challenging. In case you want to open a cryptocurrency company in Hong Kong, it would be better to hire a professional.
Incorporate and Register a Company
Hong Kong cryptocurrency companies need to be incorporated and registered as per the current Companies Law. All aspiring corporate structures have to register with the Companies Registry and function based on a Business Certificate. Company registration in Hong Kong is an easy and straightforward process. The budding investors can follow these main steps when deciding to open a company:
1. Choosing a company name
The name of your company needs to be unique. Make sure that you keep the name guidelines in mind when deciding the name of the company. You can also perform an online check to make sure the company name you are choosing is available.
2. Prepare the required company documents
The Articles of Association need to be drafted in accordance with the type of company and its particularities.
3. Determine the address
It is important to have a registered address of your company. All the locally registered companies are expected to have a registered address in Hong Kong.
4. Company structure
You must make the director appointments and establish the company’s general structure, including a secretary, if applicable.
5. Register
Last but not least, you must submit the registration form along with all of the required documents to the Companies Registry. If you’re not sure about this, contact Startupr to help you incorporate your company.
Hire a professional and one of the company formation agents in Hong Kong who can help you during the company set-up procedure. Many projects, some consultancies, and advisories are active in the Hong Kong blockchain ecosystem. This is because the government has a positive approach to blockchain and cryptocurrencies. Investors can profit right from company registration and the subsequent start of a crypto or blockchain business in Hong Kong.
Licensing requirements
There are certain regulations made by the Hong Kong authorities that you will need to fulfill in order to start a cryptocurrency business in Hong Kong. If your business is a centralized exchange, custodian, or a fiat-referenced stablecoin issuer, a license is mandatory. For all others (e.g., developers, wallets, non-custodial services), licensing is generally not required, but strict AML/KYC must be observed. Out of the two main organizational forms, a company limited by shares is the most common and legal way of operating a business.
Reporting and taxation
The tax regime of Hong Kong is extremely simple, and the taxes are generally low. The Hong Kong tax system is actually one of the many reasons which make the city very attractive. Hong Kong cryptocurrency companies are the types of legal entities that are subject to income tax, no matter what form they receive and make payments. There is no Value Added Tax (VAT) or Capital Gains Tax, which usually make taxation nightmares around bitcoin. No matter whether the company receives the payment in cash, cheque or bitcoin, it still has to pay the tax.
Looking to Start a Blockchain or Crypto Company in Hong Kong? How We Can Help
Are you planning to start a blockchain or crypto company in Hong Kong?
Startupr is an experienced incorporation service provider in Hong Kong. We make the process easy and efficient by offering targeted support for the modern crypto/blockchain business:
- Online Account Facilitation: We prioritize and streamline your application with online-first FinTech platforms (like Airwallex or Wise), ensuring your incorporation documents are perfectly prepared for rapid, remote digital approval—the fastest path to starting your business operations.
- Compliance Clarity & Setup: We help you determine the specific licensing requirements for your crypto business (e.g., VASP, Stablecoin Issuer, or non-licensed services) and ensure your corporate structure is compliant from day one.
- Full Service Support: We handle your company incorporation, registered address, company secretary, accounting, and more, allowing you to focus purely on your product and growth.
