The Securities and Futures Commission (SFC) in Hong Kong issued its first cryptocurrency license of 2025, excluding Ripple’s XRP from the list of approved cryptocurrencies.
Issuance of Exchange Licenses
On January 27, the SFC granted licenses to two Hong Kong-based cryptocurrency exchanges, PantherTrade and YAX. These exchanges are registered under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). Since 2020, 10 crypto exchanges have resumed operations under AMLO rules.
Ongoing Exclusion of XRP
Despite XRP’s global adoption, the SFC allows trading for only four cryptocurrencies: Bitcoin (BTC), Ether (ETH), Avalanche (AVAX), and Chainlink (LINK). The absence of XRP raises questions about Hong Kong’s regulatory stance on this asset.
Plans and Challenges for the Future
The SFC plans to approve 11 crypto trading platforms by the end of 2024. However, this process is hindered by stringent compliance checks, including AML laws and KYC processes. In December 2024, licenses were granted to platforms like HKbitEX, Accumulus, DFX Labs, and EX.IO.
The exclusion of XRP remains unclear, though Ripple's legal issues in various countries may be a factor. Hong Kong continues to assert itself as a crypto hub despite challenges and strict regulatory demands.
