The Hong Kong Securities and Futures Commission (SFC) has significantly increased the number of licensed virtual asset trading platforms (VATPs) by approving four new companies.
A rigorous licensing process
Accumulus GBA Technology (Hongkong), DFX Labs, Hong Kong Digital Asset EX, and Thousand Whales Technology (BVI) received licenses on Dec. 18. They joined previously licensed HashKey, OSL, and HKVAX. The SFC noted that the new exchanges were approved under its swift licensing procedure for deemed-to-be-licensed applicants. The approved platforms underwent on-site inspections and responded to feedback from the SFC, particularly regarding client asset protection, Know Your Customer processes, and cybersecurity. SFC executive director Eric Yip stated, "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.
More exchanges likely to be approved
Currently, eleven VATPs remain on the applicants list, seven of which have 'deemed-to-be-licensed' status, indicating they conform to Hong Kong’s Anti-Money Laundering and Counter-Terrorist Financing Ordinance. A popup window appears on the SFC webpage listing them with a warning to users to trade only on licensed platforms, although it is possible to do business with exchanges 'deemed to be licensed.'
Advancing regulation and technology
SFC CEO Julia Leung previously told a local media outlet that new licenses would be granted in batches as part of its roadmap through 2026, which aims to advance regulation, promote real-world asset tokenization, and explore blockchain technology. Currently, only four cryptocurrencies are available for purchase in Hong Kong: Bitcoin, Ether, Avalanche, and Chainlink. Retail cryptocurrency trading was legalized in Hong Kong in August 2023.
The licensing of four new platforms in Hong Kong demonstrates the region's commitment to strengthening its position in the virtual asset space while ensuring high investor protection standards and supporting blockchain technology advancement.
