Hong Kong Regulators to Issue New Crypto Trading Platform Licenses

Hong Kong regulators have announced plans to issue new licenses for crypto trading platforms in the country, following a lengthy review process. According to recent statements, the Hong Kong Securities and Futures Commission (SFC) is set to grant new virtual asset licenses in the near future.

Timeline for License Issuance

Executive Director of the Intermediary Department of the SFC, Ye Zhiheng, hinted at “good news” in the first quarter of 2025, although no exact date has been revealed. Ye, who also serves as the Chairman of the country’s Fintech Advisory Group, stated that the SFC inspected nearly all applicants onsite last year and notified them directly of the requirements needed to be eligible for a license.

Crypto platforms were given ample time to respond to the SFC’s notices throughout the review process. However, Ye emphasized that there is “no guarantee” that all 11 platforms will be granted licenses, citing “regulatory red lines” that include:

  • Taking steps to ensure investor protection
  • Meeting security requirements
  • Complying with other standards of operations

Ye hopes that in a month or two, the SFC will be able to share some positive updates.

Regulatory Framework

In Hong Kong, cryptocurrency is divided into two categories: security tokens and non-security tokens. Security tokens are governed by the licensing standards within the SFC’s regulatory framework, while non-security tokens comply with the nation’s Anti-Money Laundering bill.

Comparison to Other Countries

Despite promising to issue more licenses for crypto platforms, Hong Kong is still lagging behind countries like Singapore, which has issued twice the number of crypto licenses in 2024 compared to the previous year. The Hong Kong SFC had initially estimated a new batch of crypto licenses would be approved by the end of 2024, but this target has been pushed back to early 2025.

The People’s Bank of China has acknowledged Hong Kong regulators’ efforts to issue more operating licenses for crypto trading platforms, highlighting the growing significance of crypto on a global scale.

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