Yes, in Hong Kong, the buying and selling of Bitcoin (BTC) is legal. Hong Kong adopts a relatively open regulatory attitude towards cryptocurrencies, allowing individuals and businesses to trade Bitcoin within a compliance framework. Here are the details:
- Legal Framework in Hong Kong
Regulatory Body: The Securities and Futures Commission (SFC) is the main regulatory body responsible for formulating policies related to cryptocurrencies. The Hong Kong Monetary Authority (HKMA) is also involved in the regulation of stablecoins and payment sectors.
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Legal Status:
Bitcoin is considered a "Virtual Asset" and does not have legal tender status, but it can be legally used as an investment asset or trading tool.
Since 2018, the SFC has issued a "Regulatory Statement on Virtual Assets," clarifying that virtual asset trading must comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements.
In June 2023, the "Licensing Regime for Virtual Asset Trading Platforms" came into effect, requiring crypto exchanges operating in Hong Kong to obtain an SFC license.
The "Regulation of Stablecoins and Related Activities" (effective January 2025) further regulates stablecoins, but the regulation of non-stablecoins like Bitcoin remains under the existing framework.
Legal Activities: Individuals can buy and sell Bitcoin through licensed exchanges (such as HashKey, OSL) or international platforms (like Binance, Coinbase, under compliance conditions). Businesses can provide virtual asset services but must have an SFC license.
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Specifics of Buying and Selling Bitcoin
Legality: Individuals can legally buy, sell, or hold Bitcoin in Hong Kong without special permission. Transactions can be conducted through:
Licensed Exchanges: Such as HashKey Exchange, OSL, which require KYC (identity verification).
Over-the-Counter (OTC): Hong Kong allows compliant OTC services, but it is necessary to ensure that the trading party has legal qualifications.
International Platforms: Binance, Kraken, etc., are accessible in Hong Kong, but users must comply with the regulatory requirements of the platform's location.
Taxation: Hong Kong has no capital gains tax, and profits from individuals buying and selling Bitcoin are generally tax-exempt unless considered professional trading (depending on specific circumstances). Businesses may need to pay taxes based on operating income.
Restrictions:
Exchanges must comply with AML/CTF (Anti-Terrorist Financing) regulations, and users must provide identity information.
Unlicensed platforms providing services in Hong Kong are illegal, and the SFC regularly updates the "Warning List of Unlicensed Entities." -
Differences with Mainland China
Mainland China: As mentioned earlier, Bitcoin trading was classified as illegal financial activity by the "9·24 Notice" in 2021, prohibiting buying, selling, exchanging, and related services, with violators facing criminal or administrative penalties.
Hong Kong: As a Special Administrative Region, Hong Kong has an independent financial regulatory system, and Bitcoin trading is legal and supported by regulation. However, mainland residents trading Bitcoin in Hong Kong must comply with mainland foreign exchange controls (such as the annual $50,000 exchange limit), or they may violate mainland regulations. -
Latest Developments in 2025
Regulatory Strengthening: The SFC continues to expand its regulation of virtual assets, issuing "Guidelines for Virtual Asset Spot ETFs" in February 2025, allowing compliant Bitcoin ETFs to be listed in Hong Kong (such as Harvest Global's Bitcoin ETF).
Stablecoin Pilot: Hong Kong is promoting a pilot for a Renminbi stablecoin (such as cooperation between the Hong Kong Monetary Authority and the Central Bank Digital Currency Research Institute), but Bitcoin remains primarily an investment asset.
Case: In 2025, the SFC fined three unlicensed exchanges and issued warnings, indicating tightening regulation, but it did not affect legal trading. -
Risks and Recommendations
Risks:
Market Volatility: Bitcoin prices are highly volatile, and investment should be approached with caution.
Fraud Risk: Avoid using unlicensed platforms or unknown OTC services.
Cross-Border Restrictions: Mainland residents trading in Hong Kong must comply with mainland foreign exchange controls to avoid illegal currency exchange.
Recommendations:
Choose SFC-licensed exchanges (such as HashKey, one of the first licensed platforms).
Use cold wallets (such as Ledger) to store Bitcoin, ensuring asset security.
Stay updated with the SFC's official website (www.sfc.hk) or consult a professional lawyer to ensure compliance.
In Hong Kong, the buying and selling of Bitcoin is legal and regulated by the SFC, allowing individuals and businesses to operate on compliant platforms. However, mainland residents should be aware of the legal risks of cross-border trading to avoid violating mainland foreign exchange and cryptocurrency bans. If you need specific operational guidance (such as choosing exchanges or wallet setup), please provide more details!