The Securities and Futures Commission (SFC) of Hong Kong issued the first set of operational licenses of 2025 to two crypto trading platforms. The regulator has issued seven crypto licenses in total since it started a licensing drive in mid-2024.
On Jan. 27, the SFC awarded operational licenses to two Hong Kong-based crypto exchanges — PantherTrade and YAX. According to public records maintained by the Hong Kong government, both entities were registered under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO).
List of virtual asset trading platforms licensed by Hong Kong SFC. Source: HKSFC
Delays in registering crypto entities
To date, 10 crypto exchanges have formally registered in Hong Kong under AMLO since 2020 and are allowed to operate virtual asset trading platforms. In October 2024, SFC CEO Julia Leung said the regulator wanted to issue licenses to 11 crypto service providers by year-end.
At the time, the regulator had completed the first round of “on-site” reviews for the crypto firms. The inspections are focused on safeguarding client assets, Know Your Customer (KYC) processes and cybersecurity.
The SFC listed four top priorities in its 2024-2026 roadmap. Source: Hong Kong SFC
Related: Why Hong Kong has grown into a crypto hub — CEO of WOW Summit
Enforcing a strict licensing regime in Hong Kong
In December 2024, Hong Kong issued licenses to four virtual asset trading platforms — HKbitEX, Accumulus, DFX Labs and EX.IO. SFC executive director of intermediaries Eric Yip said:
“We have been proactively engaging with VATPs’ senior management and ultimate controllers which helps drive home our expected regulatory standards and expedite our licensing process for VATPs.”
The agency seeks “to strike a balance between safeguarding the interests of investors and facilitating continuous development for the virtual asset ecosystem,” Yip added.
There are only four cryptocurrencies legally available for purchase and sale in Hong Kong. They are Bitcoin (BTC), Ether (ETH), Avalanche (AVAX) and Chainlink (LINK).
Magazine: You should ‘go and build’ your own AI agent: Jesse Pollak, X Hall of Flame