by Jude Ayua
Hong Kong’s Securities and Futures Commission (SFC) has issued licenses to four virtual asset trading platforms (VATPs) under its swift licensing process. According to the SFC’s statement on 18 December, the four VATPs are Accumulus GBA Technology (Hong Kong), DFX Labs, Hong Kong Digital Asset EX, and Thousand Whales Technology (BVI).
The licensing showcases Hong Kong’s friendly approach to digital assets regulation, compared with mainland China’s restrictive approach. Hong Kong has also been proactive, as Eric Yip, SFC’s Executive Director of Intermediaries, emphasized.
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 for VATPs. We aim to strike a balance between safeguarding the interests of investors and facilitating continuous development for the virtual asset ecosystem in Hong Kong.
The licensed VATPs will operate with restricted business scopes, subject to other requirements including rectifications and third-party vulnerability and penetration testing.
Read also: UAE approves AED’s dirham-backed stablecoin.
Regulatory push and industry responses
Hong Kong’s regulatory advancements have sparked mixed reactions across the crypto industry. The SFC’s approval of crypto exchange-traded funds (ETFs) in May 2025 was initially celebrated, especially as it preceded the United States’ launching ether-based ETFs. However, US ETFs quickly overshadowed Hong Kong’s offerings in scale and impact.
Read also: Spot Bitcoin, Ether ETFs Could Gain Approval in Hong Kong Soon: Report.
Challenges also emerged in regulating over-the-counter (OTC) crypto trading services, which handle private, large-volume transactions. Initial plans to have the Customs and Excise Department oversee OTC platforms have shifted following industry feedback, with the SFC now set to play a regulatory role.
Meanwhile, Hong Kong has proposed a bill to regulate stablecoin issuers. The bill passed its first reading in the Legislative Council on 18 December. Under the proposed bill, firms must secure licences from the Hong Kong Monetary Authority (HKMA) before issuing stablecoins pegged to fiat currencies or tokens tied to the Hong Kong dollar. In July, the HKMA announced the admission of the three participants into its sandbox. The sandbox was launched “to facilitate the exchange of views between the HKMA and the industry on the proposed regulatory requirements.”
As Hong Kong moves forward with its crypto-friendly regulatory framework, it aims to balance fostering innovation and maintaining investor confidence, setting the stage for growth in its digital asset industry.
Read also: Nigeria’s SEC issues ‘Approvals-in-Principle’ to digital assets exchange firms.
Jude Ayua is a policy analyst at CAB. A lawyer, Jude is an associate at Infusion Lawyers where he is a member of the Blockchain & Virtual Assets Group. He is also a member of the Policy & Regulations Committee of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN). Jude reports and writes on crypto policy and regulations. jude@infusionlawyers.com
