Hong Kong Crypto Licensing Draws Ire Over Opaque Exam Rule

Edgen Crypto

·Feb 21 2026, 23:19

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Key Takeaways

A major industry association in Hong Kong has publicly challenged the region's virtual asset licensing process, citing a lack of transparency that could undermine its status as a crypto hub. The criticism centers on a new, unannounced mandatory examination requirement.

New Requirement: License applicants are facing a new mandatory examination that was not communicated through official public guidance.
Industry Criticism: On February 21, Chen Zhihua, President of the Hong Kong Securities and Futures Professional Association, called for the policy's suspension, citing non-transparent communication via oral or private email channels.
Potential Fallout: The ambiguity may increase compliance costs and delay applications, potentially damaging Hong Kong's reputation as a clear and reliable crypto jurisdiction.

Regulator's Unofficial Exam Mandate Sparks Criticism

On February 21, the head of the Hong Kong Securities and Futures Professional Association publicly criticized the region's virtual asset licensing process, revealing that applicants are facing new, non-transparent hurdles. Chen Zhihua, the association's president, stated that a mandatory examination requirement is being communicated informally through oral instructions or individual emails. This approach bypasses official public guidance, creating significant uncertainty for firms seeking to operate in the city.

Opaque Rules Threaten Hong Kong's Crypto Hub Status

The unpublicized policy risks damaging Hong Kong's efforts to establish itself as a premier, transparent hub for digital assets. For applicants, the lack of clear, official rules introduces potential delays and increases compliance costs as they must navigate an unpredictable regulatory landscape. In response, Chen Zhihua has called for the immediate suspension of the mandatory examination policy until a formal and transparent process can be established. Failure to address these concerns could lead firms to reconsider their commitment to Hong Kong as a primary base of operations.