The Securities and Futures Commission (SFC) of Hong Kong has issued the first crypto trading licenses of 2025. The regulator granted two new licenses, bringing the total to seven since mid-2024.
On Jan. 27, the SFC granted operational licenses to PantherTrade and YAX, two Hong Kong-based cryptocurrency exchanges. Public records show that both entities were registered under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), allowing them to operate within the city’s regulated digital asset market.
List of virtual asset trading platforms licensed by Hong Kong SFC. Source: HKSFCOnly 10 Crypto Exchanges Approved Since 2020
Hong Kong has been gradually expanding its regulatory framework for crypto exchanges. Since 2020, 10 virtual asset trading platforms (VATPs) have received licenses under AMLO. However, the licensing process has been slow, with the SFC initially aiming to approve 11 platforms by the end of 2024.
The regulator has conducted on-site inspections to evaluate compliance with customer protection measures, Know Your Customer (KYC) procedures, and cybersecurity standards.
Hong Kong Has Strict Regulatory Approach to Digital Assets
Hong Kong’s approach to cryptocurrency regulation has evolved over the years. Initially, the city had no specific legal framework governing digital assets. However, the Securities and Futures Commission (SFC) later classified some crypto assets as securities under the Securities and Futures Ordinance (SFO), requiring certain tokens and initial coin offerings (ICOs) to obtain regulatory approval.
In June 2023, a new licensing requirement mandated that all VATPs operating in Hong Kong must obtain an SFC license, reinforcing the city’s efforts to ensure market stability and investor protection.
The latest approvals follow a wave of licenses granted in December 2024 under an expedited licensing process. At the time, the SFC approved four additional VATPs, including:
Hong Kong Digital Asset EX Limited Accumulus GBA Technology Co., Limited DFX Labs Company Limited Thousand Whales TechnologyThese platforms received conditional licenses and must address compliance issues before offering full services. The SFC requires them to undergo vulnerability assessments and penetration testing conducted by an independent third party to ensure security standards.
Hong Kong’s Crypto Trading Restrictions
Currently, Hong Kong only permits the trading of four cryptocurrencies—Bitcoin (BTC), Ether (ETH), Avalanche (AVAX), and Chainlink (LINK)—under its regulatory framework. The restrictions aim to minimize risks while allowing limited crypto adoption.
To attract institutional investors, Hong Kong plans to introduce tax exemptions on investment gains from cryptocurrencies for Hedge funds, Private equity firms and Family offices.
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