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- Hong Kong issued two new crypto licenses, bringing the total approved platforms to 7.
- Only 4 cryptocurrencies are legally tradable in Hong Kong as BTC, ETH, AVAX, and LINK .
- The SFC enforces strict compliance rules to ensure investor protection and market security.
Hong Kong’s Securities and Futures Commission (SFC) issued the first crypto trading licenses of 2025 on January 27. The two exchanges, PantherTrade and YAX, received operational licenses under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). These new licenses bring the total number of licensed crypto trading platforms in Hong Kong to seven.
Hong Kong Expands Crypto Licensing for Exchanges
The Securities and Futures Commission has dedicated efforts to regulate virtual asset trading platforms since 2020. AMLO has registered 10 crypto exchanges which successfully operate within its framework. Registration from the SFC enables platforms to operate lawfully within the designated region. Regulatory authorities originally aimed to grant 11 licenses before the end of 2024. However, it faced delays during the approval process.
Additionally, crypto exchanges will submit their applications as the licensing system continues its progression. The SFC finalized its initial series of location inspections in October 2024. The review process evaluated firms to verify they securely manage client funds while following both KYC regulations and maintaining platform security systems against cyber threats.
Strict Compliance Requirements for Crypto Platforms
The SFC has set high standards for crypto exchanges to follow. In December 2024, it issued licenses to four additional platforms: HKbitEX, Accumulus, DFX Labs, and EX.IO. These platforms had to meet the strict regulatory requirements before receiving approval.
Eric Yip, SFC’s executive director of intermediaries, emphasized that the commission engages directly with senior management teams. This direct engagement helps exchanges understand their regulatory obligations. It ensures that these platforms meet the necessary compliance standards to protect investors and prevent illicit activities.
Limited Crypto Trading Options in Hong Kong
Despite the expanding list of licensed exchanges, the number of cryptocurrencies allowed for trading in Hong Kong is limited. Currently, only four digital assets are legally available for trading. These assets are Bitcoin (BTC), Ether (ETH), Avalanche (AVAX), and Chainlink (LINK).
The SFC restricts crypto trading to these assets to ensure compliance with financial security standards. The regulator aims to protect the market from potential risks associated with unregulated digital assets. While the list of approved assets may expand, it will depend on ongoing regulatory assessments and market developments.
Hong Kong’s careful approach seeks to balance the promotion of the crypto sector with investor protection. As the regulatory framework matures, more platforms are likely to seek licenses, fostering growth while maintaining safety in the market.