Hong Kong SFC issues first crypto licenses of 2025

Hong Kong's Securities and Futures Commission (SFC) has issued its first operational licenses for cryptocurrency trading platforms in 2025, granting licenses to PantherTrade and YAX on January 27.

This development brings the total number of crypto licenses issued by the SFC to seven since mid-2024, as part of its ongoing efforts to regulate the digital asset market.

Both PantherTrade and YAX are now officially registered under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), reflecting the SFC's commitment to ensuring compliance with financial regulations.

As of now, a total of ten crypto exchanges have registered in Hong Kong since 2020, allowing them to operate virtual asset trading platforms.

In October 2024, SFC CEO Julia Leung indicated that the regulator aimed to license eleven crypto service providers by the end of that year.

However, this target was not met, leading to delays in the registration process for new crypto entities.

The SFC has conducted comprehensive on-site reviews focusing on client asset protection, Know Your Customer (KYC) processes, and cybersecurity measures.

Eric Yip, executive director of intermediaries at the SFC, mentioned that engaging with senior management of virtual asset trading platforms (VATPs) has been crucial in driving regulatory standards and expediting the licensing process.

Currently, only four cryptocurrencies are legally permitted for trading in Hong Kong: Bitcoin (CRYPTO:BTC), Ether (CRYPTO:ETH), Avalanche (CRYPTO:AVAX), and Chainlink (CRYPTO:LINK).

While Hong Kong is positioning itself as a crypto hub, it faces challenges in keeping pace with other markets such as Singapore.

The SFC's roadmap for 2024-2026 aims to enhance market integrity, attract investors, and ensure the security of the financial sector while fostering innovation.

Looking ahead, more licenses are expected to be granted as the SFC continues its proactive approach to regulating the evolving cryptocurrency landscape.