Short Description
Hong Kong’s Securities and Futures Commission licenses its first new crypto exchange since mid-2025, signaling continued regulatory evolution in the Asian financial hub.
Read Time
3 minutes 15 seconds
Main Article
Hong Kong’s regulatory landscape for cryptocurrency is evolving with deliberate speed. The Securities and Futures Commission (SFC) has licensed Victory Fintech Company Limited, marking the first new addition to its list of authorized virtual asset trading platforms since June 2025. This brings the total number of licensed platforms in the jurisdiction to twelve, underscoring a measured, compliance-first approach that contrasts with the exodus of several major global exchanges last year.
This licensure follows significant recent policy updates from the SFC that are reshaping market access. Crucially, the regulator now permits licensed brokers to offer crypto margin financing, with Bitcoin (BTC) and Ether (ETH) as the only accepted collateral initially. Furthermore, a new framework allows platforms to offer perpetual contracts to professional investors. These moves signal Hong Kong’s intent to provide regulated avenues for sophisticated crypto products, potentially attracting institutional capital seeking clarity.
While building this licensed ecosystem, Hong Kong authorities continue to tighten enforcement against unlicensed operators, a criminal offense since mid-2024. The focus on compliance extends to upcoming rules for crypto advisory services, with a draft ordinance expected in 2026. Notably, the city’s stablecoin regime remains nascent, with the Hong Kong Monetary Authority yet to list any licensed stablecoin issuers, highlighting areas where regulatory infrastructure is still under active development.
Short Summary
Hong Kong’s SFC has licensed Victory Fintech, the first new crypto exchange approval since mid-2025. This comes alongside new rules allowing regulated crypto margin financing and perpetual contracts for professionals. The moves highlight Hong Kong’s dual strategy of fostering a compliant digital asset market for institutions while aggressively pursuing unlicensed operators, even as frameworks for areas like stablecoins continue to develop.
