Hong Kong is rapidly injecting vitality into its virtual asset industry.
On December 18, the Hong Kong Securities and Futures Commission (SFC) granted Virtual Asset Trading Platform (VATP) licenses to four applicants under an expedited licensing procedure. This brings the total number of licensed virtual asset trading platforms in Hong Kong to seven.
Key Developments in Hong Kong's Virtual Asset Licensing
Recent License Grants:
The four newly licensed platforms are:
- Cloud Account Greater Bay Area Technology (Hong Kong) Limited
- DFX Labs Company Limited
- Hong Kong Digital Asset Exchange Group Limited
- Thousand Whales Technology (BVI) Limited
Terence Pu, Managing Director of HashKey Exchange (one of Hong Kong's first officially licensed VATPs), noted: "Recent applications and approvals for HashKey Exchange have received swift responses. Compared to traditional financial sectors like securities or asset management, the current efficiency in crypto licensing is remarkably fast."
Regulatory Context and Transition Timeline
- June 2023: Hong Kong’s new VATP licensing regime took effect, with the SFC beginning to accept applications.
- February 2024: Platforms operating in Hong Kong were required to submit license applications.
- May 2024: Unlicensed platforms had to cease operations.
During the transition period, several platforms—including HKVAEX, OKX HK, and Bybit—withdrew their applications. Only HashKey Exchange and OSL initially received full licensing to offer BTC/ETH retail trading.
Expedited Licensing Process Explained
SFC Executive Director Julia Leung introduced a "Rapid Licensing Procedure" in October 2024, emphasizing:
"Direct engagement with platform executives ensures clarity on regulatory standards and accelerates approvals. We aim to balance investor protection with ecosystem growth."
The SFC expects to issue the first formal licenses by year-end under this streamlined process.
Market Expansion and Future Outlook
- HKVAX became Hong Kong’s third licensed VATP in October 2024, focusing on security token offerings (STOs) and real-world asset tokenization (RWA).
- The SFC plans to conditionally approve additional licenses in batches through 2025.
- Joseph Chan, Acting Secretary for Financial Services, announced plans for a 2025 "Advisory Group" to support licensed platforms and proposed new rules for crypto custody services.
Global Context and Industry Sentiment
Bitcoin’s 150% price surge in 2024 (surpassing $100,000) and pro-crypto policies globally have intensified competition among financial hubs. Terence Pu remarked:
"New VATPs will diversify Hong Kong’s ecosystem. Collaboration—not competition—is key to establishing Hong Kong as a Web3 hub. We anticipate 3–5 years of sustained global regulatory evolution."
FAQ Section
1. How many virtual asset trading platforms are currently licensed in Hong Kong?
As of December 2024, seven platforms hold VATP licenses, with more approvals expected.
2. What happens to platforms that didn’t meet the licensing deadline?
Unlicensed platforms must cease operations. The SFC may grant conditional approvals after remediation.
3. Why is Hong Kong accelerating VATP licensing?
To strengthen its position as a global virtual asset hub while ensuring investor protection and market integrity.
👉 Explore licensed trading platforms for secure virtual asset services.
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