National Supervisory Authority & Licensing Qualification Dossier • Asia-Pacific
HKMA
Hong Kong SARHong Kong Monetary Authority
Source / Native Reference: 香港金融管理局
- Supervisory tier
- Tier-1
- License classes
- 4
- Licensed records
- 19
- Active / regulated
- 19
Statutory Supervisory Mandate & Scope
Hong Kong Monetary Authority (HKMA) (HKMA) is the central banking and prudential supervisory authority in Hong Kong SAR (Tier-1 jurisdiction). Its mandate encompasses monetary policy implementation, systemic financial stability, Basel III capital adequacy and liquidity (LCR/NSFR) supervision for credit institutions, payment systems oversight, and statutory licensing of banks and authorised financial institutions.
Regulates securities and futures dealers, asset managers, investment advisers, leveraged foreign exchange traders, HKEX market infrastructure, and Virtual Asset Trading Platforms (VATPs).
Prudential Tier Assessment
Tier-1Statutory Tier-1 capital markets and virtual asset regulator of Hong Kong SAR administering the Securities and Futures Ordinance (Cap. 571) and AMLO (Cap. 615).
National licensing qualifications & statutory authorisation classes (HKMA)
Authorisation categories, permitted institutional and retail activities, minimum initial capital adequacy, and ongoing prudential solvency rules enforced by HKMA in Hong Kong SAR.
| License class / code | Official designation | Permitted institutional & retail activities | Minimum initial / base capital | Ongoing prudential & solvency rule |
|---|---|---|---|---|
| Type 1 & Type 2 | Dealing in Securities (Type 1) & Dealing in Futures Contracts (Type 2) | Executing and clearing equities, bonds, funds, options, and futures contracts; margin financing (Type 1) and virtual asset omnibus distribution. | HKD $5,000,000 minimum Paid-Up Share Capital (HKD $10,000,000 if providing securities margin financing) + HKD $3,000,000 minimum Liquid Capital. | Monthly FRR (Financial Resources Rules) return; Required Liquid Capital must exceed the higher of floor capital or 5% of adjusted liabilities; minimum 2 Responsible Officers (ROs). |
| Type 3 | Leveraged Foreign Exchange Trading | Acting as principal counterparty or agent for retail and institutional off-exchange leveraged FX contracts. | HKD $30,000,000 minimum Paid-Up Share Capital + HKD $15,000,000 minimum Liquid Capital (HKD $5M/3M for approved introducing agents). | Strict 20:1 retail FX leverage cap (5% initial margin, 3% maintenance margin) + daily mark-to-market liquid capital calculation. |
| Type 4 & Type 9 | Advising on Securities (Type 4) & Asset Management (Type 9 — Traditional & Virtual Asset Funds) | Discretionary management of SFC-authorised retail funds, private hedge funds, OFCs (Open-Ended Fund Companies), and virtual asset portfolios (>10% VA threshold). | HKD $5,000,000 Paid-Up Share Capital + HKD $3,000,000 Liquid Capital (or HKD $100,000 Liquid Capital if restricted from holding any client assets). | Fund Manager Code of Conduct (FMCC), mandatory appointment of an independent qualified custodian, and VA Terms and Conditions for Type 9 managers. |
| Type 7 & AMLO VATP | Automated Trading Services (Type 7) & Virtual Asset Trading Platform (VATP) Operator | Operating an institutional electronic matching engine, dark pool, or licensed retail/institutional centralized cryptocurrency exchange in Hong Kong. | HKD $5,000,000 minimum Paid-Up Share Capital + HKD $3,000,000 minimum Liquid Capital plus minimum 12 months of actual operating expenses held in liquid assets in HK. | 98% cold wallet custody, token Admission and Review Committee due diligence, prohibition of proprietary market-making by the VATP, and monthly SFC FRR filings. |
Investor compensation, client money segregation & digital-asset regime
Statutory counterparty protections, custody reconciliation mandates, and virtual-asset licensing status under HKMA.
Investor Compensation Fund (ICF — Administered by Investor Compensation Company Limited)
- Maximum coverage per client
- HKD $500,000 per investor per default for securities or futures contracts traded on HKEX (and northbound Stock Connect)
- Eligible counterparties & scope
- Retail and non-institutional investors (institutional professional investors and off-exchange VATP spot crypto transactions are excluded from ICF; VATPs must maintain mandatory third-party custody insurance).
SFO Cap. 571I (Client Money Rules) & Cap. 571H (Client Securities Rules)
- Reconciliation & audit cadence
- Client money must be paid into a segregated trust account at an HKMA Authorized Institution in Hong Kong within one business day of receipt.
- Approved custodian requirements
- For VATPs, 98% of client virtual assets must be held in cold storage by an associated entity (TCSP-licensed wholly owned subsidiary in HK) with HSM FIPS 140-2 Level 3+ security.
Dual SFO & AMLO Part 5B Virtual Asset Trading Platform (VATP) Licensing + Spot Crypto ETFs (In-Kind Creation)
- Travel Rule, custody & stablecoin rules
- Immediate Travel Rule compliance under SFC AML/CFT Guideline Chapter 12; mandatory compensation insurance covering 50% of cold storage and 100% of hot storage assets.
Primary Governing Statutes & Rulebooks
- Securities and Futures Ordinance (SFO — Cap. 571) & Securities and Futures (Financial Resources) Rules (FRR)
- Securities and Futures (Client Money) Rules (Cap. 571I) & (Client Securities) Rules (Cap. 571H)
- Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO — Cap. 615 Part 5B VATP Regime)
- SFC Code of Conduct for Persons Licensed by or Registered with the SFC
Regulatory Reporting & Audit Obligations
Monthly electronic Financial Resources Rules (FRR) return within 3 weeks of month-end via SFC WINGS portalAnnual audited accounts and independent auditor’s compliance report on Client Money and Client Securities rules within 4 months of financial year-endMandatory registration with the Financial Dispute Resolution Centre (FDRC) for all SFC-licensed corporations
Cross-Border Equivalence & Passporting
Mutual Recognition of Funds (MRF) with Mainland China (CSRC), Switzerland (FINMA), France (AMF), United Kingdom (FCA), Luxembourg (CSSF), Netherlands (AFM), Thailand, and Australia (ASIC); Wealth Management Connect across the Greater Bay Area.
Supervised institutions & HKMA licence records in our database
19 licence records referencing HKMA (19 regulated/registered).
| Institution | Licence number | Status | Licensed legal entity | Effective date | Verification |
|---|---|---|---|---|---|
| MUFG Bank | Number pending check | Regulated | MUFG BANK, LTD. | — | |
| HSBC | Number pending check | Regulated | HSBC BANK PLC | — | |
| Airstar Bank Limited | Number pending check | Regulated | AIRSTAR BANK LIMITED | — | |
| Ant Bank | Number pending check | Regulated | ANT BANK (HONG KONG) LIMITED | — | |
| Chong Hing Bank Limited | Number pending check | Regulated | CHONG HING BANK LIMITED | — | |
| Fubon Bank (Hong Kong) | Number pending check | Regulated | FUBON BANK (HONG KONG) LIMITED | — | |
| Fusion Bank | Number pending check | Regulated | FUSION BANK LIMITED | — | |
| Standard Chartered Bank | Number pending check | Regulated | Standard Chartered Bank (Hong Kong) Limited | — | |
| Tai You Bank Limited | Number pending check | Regulated | TAI YAU BANK, LIMITED | — | |
| WeLab Bank Limited | Number pending check | Regulated | WELAB BANK LIMITED | — | |
| ZA Bank | Number pending check | Regulated | ZA BANK LIMITED | — | |
| Mizuho Securities(Global network record) | Number pending check | Regulated | MIZUHO BANK, LTD. | — | |
| DBS Bank(Global network record) | Number pending check | Regulated | DBS Bank Limited | — | |
| Chiyu Banking(Global network record) | Number pending check | Regulated | CHIYU BANKING CORPORATION LIMITED | — | |
| DAH(Global network record) | Number pending check | Regulated | DAH SING BANK, LIMITED | — | |
| HSB(Global network record) | Number pending check | Regulated | Hang Seng Bank | — | |
| Mox(Global network record) | Number pending check | Regulated | MOX BANK LIMITED | — | |
| NCB(Global network record) | Number pending check | Regulated | NANYANG COMMERCIAL BANK, LIMITED | — | |
| Tai Sang Bank(Global network record) | Number pending check | Regulated | TAI SANG BANK LIMITED | — |
HKMA (Hong Kong SAR): institutional licensing & due diligence FAQ
Key statutory capital, compensation, custody segregation, and verification answers for compliance teams.
What are the primary licensing classes and minimum capital requirements under HKMA (Hong Kong SAR)?
HKMA (Hong Kong Monetary Authority) supervises financial institutions in Hong Kong SAR under Securities and Futures Ordinance (SFO — Cap. 571) & Securities and Futures (Financial Resources) Rules (FRR) and Securities and Futures (Client Money) Rules (Cap. 571I) & (Client Securities) Rules (Cap. 571H). Key statutory authorisation classes include: Type 1 & Type 2 (Dealing in Securities (Type 1) & Dealing in Futures Contracts (Type 2) — min. capital: HKD $5,000,000 minimum Paid-Up Share Capital (HKD $10,000,000 if providing securities margin financing) + HKD $3,000,000 minimum Liquid Capital.); Type 3 (Leveraged Foreign Exchange Trading — min. capital: HKD $30,000,000 minimum Paid-Up Share Capital + HKD $15,000,000 minimum Liquid Capital (HKD $5M/3M for approved introducing agents).); Type 4 & Type 9 (Advising on Securities (Type 4) & Asset Management (Type 9 — Traditional & Virtual Asset Funds) — min. capital: HKD $5,000,000 Paid-Up Share Capital + HKD $3,000,000 Liquid Capital (or HKD $100,000 Liquid Capital if restricted from holding any client assets).); Type 7 & AMLO VATP (Automated Trading Services (Type 7) & Virtual Asset Trading Platform (VATP) Operator — min. capital: HKD $5,000,000 minimum Paid-Up Share Capital + HKD $3,000,000 minimum Liquid Capital plus minimum 12 months of actual operating expenses held in liquid assets in HK.). Ongoing prudential supervision requires strict adherence to capital adequacy and liquidity buffers.
Does HKMA provide statutory investor compensation and mandatory client asset segregation?
Under HKMA's framework, investor protection is governed by Investor Compensation Fund (ICF — Administered by Investor Compensation Company Limited) with maximum coverage of HKD $500,000 per investor per default for securities or futures contracts traded on HKEX (and northbound Stock Connect) (Retail and non-institutional investors (institutional professional investors and off-exchange VATP spot crypto transactions are excluded from ICF; VATPs must maintain mandatory third-party custody insurance).). For client money and custody assets, supervised firms must comply with SFO Cap. 571I (Client Money Rules) & Cap. 571H (Client Securities Rules), performing client money must be paid into a segregated trust account at an hkma authorized institution in hong kong within one business day of receipt. with for vatps, 98% of client virtual assets must be held in cold storage by an associated entity (tcsp-licensed wholly owned subsidiary in hk) with hsm fips 140-2 level 3+ security..
How does HKMA regulate digital assets, crypto exchanges (VASPs/CASPs), and stablecoins?
HKMA's digital-asset regime is structured around Dual SFO & AMLO Part 5B Virtual Asset Trading Platform (VATP) Licensing + Spot Crypto ETFs (In-Kind Creation) (Fully operational mandatory VATP licensing regime, retail access to large-cap tokens on licensed VATPs, and Asia’s first Spot Bitcoin & Ether ETFs with in-kind creation/redemption.). Custody and AML/CFT compliance obligations require: Immediate Travel Rule compliance under SFC AML/CFT Guideline Chapter 12; mandatory compensation insurance covering 50% of cold storage and 100% of hot storage assets.
How can I verify an institution's HKMA licence number and check our 19 recorded licence entries?
Our database currently tracks 19 licence records referencing HKMA (19 marked regulated or registered). To verify a counterparty at the primary source, open HKMA's official public register (https://www.hkma.gov.hk/), search by the exact reference number and legal entity name, and confirm that the firm's domain and permitted activities match its statutory authorisation.
Related regulatory & market structure briefings
Research and compliance analysis from FinLexicon Wiki relevant to HKMA and Hong Kong SAR.
Statutory Law & Custody Architecture
Statutory Client Asset Segregation & Insolvency Waterfalls: Comparative Legal Architecture of FCA CASS 7, SEC Rule 15c3-3, SIPA, and EU MiFID II Custody Regimes (2026)
A definitive statutory and insolvency-law reference comparing UK FCA CASS 7 statutory trusts, US SEC Rule 15c3-3 customer reserve formulas and SIPA liquidations, EU MiFID II Article 16(8)-(10) title-transfer prohibitions, and Japanese FIEA Article 43-2 trust bank mandates.
Derivatives Margin & Prudential Regulation
ISDA 2026 SIMM Risk Weights, Uncleared Margin Rules (UMR) Thresholds & VM/IM Collateral Eligibility
ISDA Standard Initial Margin Model (SIMM) refers to a parametric, sensitivity-based methodology calibrated across a 10-day margin period of risk (MPOR) at a 99% confidence interval to calculate regulatory initial margin for non-centrally cleared over-the-counter (OTC) derivatives under BCBS-IOSCO Uncleared Margin Rules (UMR).
Prudential Regulation & Capital Standards
Expanded Risk-Based Approach (ERBA) Basel III Endgame Standard: Statutory Definition, Regulatory Scope & Compliance Deadlines (-4.8% Cat I/II CET1 Change Benchmark)
Expanded Risk-Based Approach (ERBA) Basel III Endgame Standard (BASEL-ERBA-2026) stands at -4.8% (Cat I/II CET1 Change) (Source: Federal Reserve / OCC / FDIC, 2026-10-20), governing exact rule citations, covered entities
Market Microstructure & Derivatives Taxonomy
Expanded Risk-Based Approach (ERBA) Basel III Endgame Standard: Balance-Sheet Netting Mechanics & RWA Capital Weight Calculation (-4.8% Cat I/II CET1 Change Benchmark)
Expanded Risk-Based Approach (ERBA) Basel III Endgame Standard (BASEL-ERBA-2026) stands at -4.8% (Cat I/II CET1 Change) (Source: Federal Reserve / OCC / FDIC, 2026-10-20), governing multilateral netting compression and T
Statutory licensing classes, base capital rules, and investor protection summaries for HKMA (Hong Kong SAR) are maintained for institutional benchmarking and do not constitute legal advice. Always verify current rulebooks and active firm authorisations directly on HKMA’s official public register.