Hong Kong Expands Crypto Hub with Four New Exchange Licenses

• Hong Kong’s SFC has licensed four new crypto exchanges, expanding the total to seven.
• The licensing aligns with Hong Kong’s goal to be a regulated cryptocurrency hub.
• Approved exchanges must meet strict compliance before beginning their operations.

Hong Kong’s Securities and Futures Commission (SFC) has granted licenses to four new crypto exchanges. The newly licensed platforms include Accumulus GBA Technology (Hong Kong) Co., DFX Labs Company, Hong Kong Digital Asset EX, and Thousand Whales Technology (BVI). This expansion brings the total number of licensed virtual asset trading platforms in Hong Kong to seven, joining previously approved operators HashKey, OSL, and HKVAX.

The licensing process was conducted under the SFC’s “swift licensing process.” Eric Yip, the SFC’s executive director of intermediaries, emphasized the regulator’s proactive engagement with platform management to establish clear regulatory standards while allowing ecosystem development.

These approvals come amid Hong Kong’s broader strategy to differentiate itself from mainland China’s restrictive stance on cryptocurrencies. While Beijing maintains a strict ban on commercial crypto activities, Hong Kong has actively pursued policies to establish itself as a regulated hub for digital asset trading.

The new licenses emerged from a competitive field of nearly 30 applicants, though several major platforms, including OKX and HTX, withdrew their applications due to stringent regulatory requirements. The approved exchanges must complete specific rectification actions and undergo independent vulnerability assessments before commencing operations.

Among the newly licensed platforms, Thousand Whales Technology, operating as EX.IO, stands out with backing from Valuable Capital Group. Hong Kong’s regulatory framework continues to change, with the city recently introducing legislation to regulate stablecoin issuers. The bill, now in its first reading at the Legislative Council, requires firms to obtain licenses from the Hong Kong Monetary Authority before issuing fiat-referenced stablecoins.

The expansion of licensed exchanges follows Hong Kong’s pioneering launch of Asia’s first spot Bitcoin and Ethereum ETFs in April, predating similar developments in other markets. These developments represent major progress in Hong Kong’s strategy to establish itself as a leading cryptocurrency center while maintaining strong investor protections and regulatory oversight.