A tale of two jurisdictions: Contrasting cryptocurrency regulations in Hong Kong and the United Kingdom

Burgess, Thomas ORCID: https://orcid.org/0009-0006-1583-2450 and Liu, Jingru 2025. A tale of two jurisdictions: Contrasting cryptocurrency regulations in Hong Kong and the United Kingdom. Journal of Economic Criminology 8 , 100150. 10.1016/j.jeconc.2025.100150

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Abstract

This article examines the regulatory approaches of Hong Kong and the United Kingdom (UK) towards cryptocurrencies, highlighting their distinct regulatory philosophies and frameworks. Hong Kong has adopted a comprehensive and proactive regulatory approach, creating a dual-licensing regime for virtual asset trading platforms covering security and non-security tokens and tailoring the existing licensing framework under the Securities and Futures Ordinance to risks in managing and distributing portfolios that invest in virtual assets. This measured approach prioritises investor protection, market integrity, and financial crime prevention while fostering an innovation-friendly environment. Conversely, the UK has taken a conservative stance, integrating cryptocurrency regulation into existing financial systems and prioritising stability, consumer protection, and control over speculative risks. The UK’s framework emphasises Anti-Money Laundering and Counter-Terrorism Financing compliance, registration for crypto-related activities, and restrictions on high-risk products for retail investors. Through comparative analysis, this article illustrates how both jurisdictions balance regulatory oversight with financial innovation and how their regulatory strategies reflect their economic and financial priorities. The findings suggest that Hong Kong’s flexible, forward-looking approach, characterised by dedicated licensing, proactive regulation, and tailored investor protection, positions it as an agile player in the evolving crypto landscape. In contrast, the UK’s framework leans heavily on stability and consumer safeguards. Ultimately, Hong Kong emerges as a rising Asian crypto hub, embracing growth and innovation, while the UK focuses on reinforcing its regulatory defences. This comparison sheds light on how regional priorities shape cryptocurrency regulation, offering insights into the broader global regulatory landscape.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Schools > Cardiff Law & Politics
Additional Information:	License information from Publisher: LICENSE 1: URL: http://creativecommons.org/licenses/by-nc/4.0/, Start Date: 2025-03-09
Publisher:	Elsevier
ISSN:	2949-7914
Date of First Compliant Deposit:	23 April 2025
Date of Acceptance:	9 March 2025
Last Modified:	23 Apr 2025 09:45
URI:	https://orca.cardiff.ac.uk/id/eprint/177850

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