The Securities and Futures Commission (SFC) of Hong Kong has kicked off the year by awarding its first set of operational licenses for 2025 to two cryptocurrency trading platforms. Since launching its licensing initiative in mid-2024, the regulator has now granted a total of seven licenses to virtual asset trading platforms (VATPs).
Two New Crypto Exchanges Receive Approval
On January 27, 2025, the SFC issued licenses to PantherTrade and YAX, two Hong Kong-based crypto exchanges. Public records maintained by the Hong Kong government confirm that both platforms are registered under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), ensuring compliance with strict financial regulations.
Delays in Crypto Licensing Process
As of now, 10 cryptocurrency exchanges have successfully registered under AMLO since 2020, making them eligible to operate virtual asset trading platforms in the city. However, the licensing process has experienced delays. Back in October 2024, SFC CEO Julia Leung stated that the regulator aimed to approve 11 crypto service providers by the end of the year.
At that time, the SFC had already conducted the first round of on-site inspections for applicant firms. These reviews focused on key regulatory aspects such as client asset protection, Know Your Customer (KYC) compliance, and cybersecurity measures.
Hong Kong’s Strict Crypto Regulatory Framework
In December 2024, the SFC granted licenses to four additional VATPs—HKbitEX, Accumulus, DFX Labs, and EX.IO. Emphasizing the importance of compliance, SFC Executive Director of Intermediaries 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.”
Yip further highlighted the SFC’s dual focus on investor protection and fostering the virtual asset ecosystem in Hong Kong.
Limited Crypto Assets Available for Trading
Despite the growing number of licensed exchanges, Hong Kong maintains a limited selection of cryptocurrencies that can be legally traded. Currently, only Bitcoin (BTC), Ether (ETH), Avalanche (AVAX), and Chainlink (LINK) are approved for purchase and sale within the region.
As Hong Kong continues to strengthen its regulatory framework, the latest licensing decisions signal a measured but progressive approach toward crypto adoption in the financial hub.
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