Hong Kong's Securities and Futures Commission (SFC) officially granted operational licenses to two cryptocurrency trading platforms—PantherTrade and YAX—on January 27, 2025, marking another milestone in the city's efforts to regulate its growing crypto market. Since mid-2024, the SFC has issued a total of seven Virtual Asset Trading Platform (VATP) licenses, reinforcing Hong Kong's position as a hub for compliant digital asset trading.
Stricter Regulatory Policies for Cryptocurrency Exchanges in Hong Kong
As Hong Kong aspires to become Asia's leading hub for cryptocurrency and fintech innovation, its regulatory framework continues to evolve. Licensed platforms must adhere to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), ensuring transaction security and market transparency.
Eric Yip, Executive Director of Intermediaries at the SFC, emphasized the regulator's proactive engagement with platform operators to expedite licensing while maintaining compliance. "Our goal is to balance investor protection with fostering innovation in the virtual asset ecosystem," he noted.
Currently, only four cryptocurrencies—Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), and Chainlink (LINK)—are officially approved for trading in Hong Kong.
Hong Kong’s Crypto Market Outlook: Rising as a Global Financial Innovation Hub
Hong Kong has emerged as a key player in blockchain and cryptocurrency development, alongside Dubai and Singapore. Ivan Ivanov, CEO of WOW Summit, highlighted Hong Kong's unique advantages: stringent regulations, institutional investor appeal, and strong ties to Mainland China, making it a gateway for global investors entering the Chinese-speaking market.
The government is also advancing stablecoin regulations, requiring issuers to obtain licenses and hold reserves in local banks, further boosting market confidence.
2025 Comparison of Top Six Hong Kong Cryptocurrency Exchanges
Below is a breakdown of major exchanges for investors to evaluate:
| Exchange | Established | Spot Volume (Daily) | Derivatives Volume (Daily) | Weekly Traffic | Fees | Coins Listed |
|---|---|---|---|---|---|---|
| Binance | 2017 | HKD 92.1B | HKD 274.9B | 14.1M | 0.1% | 420 |
| Coinbase | 2012 | HKD 21B | HKD 5.2B | 60K | 0.5% | 250 |
| Bybit | 2018 | HKD 30.9B | HKD 103.1B | 7M | 0.1% | 655 |
| Gate.io | 2013 | HKD 16.6B | HKD 16.2B | 4.02M | 0.1% | 2,197 |
| HashKey | 2018 | HKD 500M | N/A | 60K | 0% | 23 |
| OSL | 2018 | N/A | N/A | <50K | 0% | 3 |
👉 Explore the best crypto trading platforms for low fees and high liquidity.
Spotlight on Key Exchanges
- Binance: Dominates global trading volume (50% market share) but lacks a Hong Kong license.
- Bybit: Offers 100x leverage and low fees (0.1%), pending local licensing.
- HashKey: First SFC-licensed VATP, with 98% cold wallet storage.
- OSL: Compliant with SOC 2 Type 2 standards, requiring strict KYC.
AI and Regulatory Advancements
In October 2024, Hong Kong’s Financial Services and Treasury Bureau (FSTB) launched an AI-driven regulatory framework to integrate fintech innovations safely. Over 270 blockchain firms now operate in Cyberport, bolstering the city's tech ecosystem.
As regulations mature, Hong Kong is poised to attract more global crypto enterprises, cementing its status as Asia’s financial and blockchain nucleus.
FAQs
Q1. Can I use Binance in Hong Kong?
Yes, but it operates without a local license. Investors can also access crypto via SFC-approved funds through securities accounts.
Q2. Is Bybit reliable?
Bybit employs robust security measures (e.g., SSL encryption, cold storage) and is popular for derivatives trading, though it’s reapplying for a Hong Kong license.
Q3. What cryptocurrencies are legal in Hong Kong?
Only BTC, ETH, AVAX, and LINK are officially recognized.
👉 Learn more about trading securely in regulated markets.