Hong Kong regulator adds Victory Fintech to list of approved trading platforms
Summary
A crypto company has become the first to receive a license from the Securities and Futures Commission since June 2025, following the approval of Hong Kong BGE. This marks a significant milestone in the evolving regulatory landscape for cryptocurrency.
Key Insights
What does it mean for a crypto trading platform to be licensed by Hong Kong's Securities and Futures Commission?
A license from Hong Kong's Securities and Futures Commission (SFC) means a crypto trading platform has met strict regulatory requirements and is authorized to operate legally in Hong Kong. Licensed platforms must comply with investor protection measures covering onboarding, governance, disclosure, and due diligence procedures. They can provide services to both retail and professional investors and may engage in additional activities such as custody services, distribution of investment products with virtual asset exposure, and tokenized securities trading, subject to SFC approval. As of late 2025, 11 crypto trading platforms had received SFC approval, including OSL, HashKey, and Bullish.
Why is Hong Kong's approval of new crypto trading platforms significant for the broader cryptocurrency market?
Hong Kong's licensing approvals signal the city's commitment to becoming a global digital finance hub with a comprehensive regulatory framework comparable to traditional financial markets. Each new licensed platform represents Hong Kong's shift from policy design to active enforcement and oversight. The approvals also enable platforms to access global liquidity, expand product offerings including margin financing and perpetual contracts for professional investors, and provide stablecoin services once stablecoin issuer licenses roll out. This regulatory clarity and infrastructure development attracts institutional participation and increases market depth, positioning Hong Kong as a competitive jurisdiction for digital asset trading amid competition from other financial centers.