Hong Kong Virtual Asset Trading Platforms: The Path to Compliant Development
The Hong Kong SAR Government maintains an open attitude towards the development of Virtual Assets (VA) and is committed to building a clear regulatory framework, aiming to establish Hong Kong as an international virtual asset hub. Since June 1, 2023, Hong Kong has officially implemented the Virtual Asset Service Provider (VASP) licensing regime, requiring all virtual asset trading platforms operating in Hong Kong to apply for a license from the Hong Kong Securities and Futures Commission (SFC). This regime aims to ensure market participants adhere to strict Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations, and requires platforms to implement client asset segregation measures, such as holding at least 98% of client virtual assets in cold storage (offline wallets).
The Hong Kong SFC requires licensed platforms to simultaneously meet the requirements for Type 1 (dealing in securities) and Type 7 (providing automated trading services) regulated activities under the Securities and Futures Ordinance, covering both security token and non-security token trading businesses. In addition, Hong Kong Customs is also responsible for regulating over-the-counter (OTC) virtual asset transactions and plans to legislate requiring relevant service companies to obtain a Customs license.
Overview of Major Licensed Platforms
As of May 2026, 13 virtual asset trading platforms in Hong Kong have obtained official licenses, operating under a strict regulatory framework and providing services to eligible investors. These platforms include:
- OSL Digital Securities Limited (OSL Exchange): Licensed on December 15, 2020, it is Hong Kong's first licensed virtual asset trading platform, and on April 19, 2024, it became the first platform to be granted a license for "operating a virtual asset trading platform" under the AMLO.
- Hash Blockchain Limited (HashKey Exchange): Licensed on November 9, 2022, it focuses on institutional-grade cryptocurrency services.
- Hong Kong Virtual Asset Exchange Limited (HKVAX): Licensed on October 3, 2024.
- Hong Kong Digital Asset EX Limited (HKbitEX): Licensed on December 18, 2024.
- Accumulus GBA Technology (Hongkong) Co., Limited (Accumulus): Licensed on December 18, 2024.
- DFX Labs Company Limited (DFX Labs): Licensed on December 18, 2024.
- EXIO Limited (EX.IO): Licensed on December 18, 2024.
- Panthertrade (Hong Kong) Limited (PantherTrade): Licensed on January 27, 2025.
- YAX (Hong Kong) Limited (YAX): Licensed on January 27, 2025.
- Bullish HK Markets Limited (Bullish): Licensed on February 18, 2025.
- Hong Kong BGE Limited (BGE): Licensed on June 17, 2025.
- Victory Fintech Company Limited (VDX): Licensed on February 13, 2026.
- NewBX Limited (Bixin.com): Licensed on May 18, 2026.
In addition to the licensing regime, Hong Kong also approved the listing of Asia's first batch of Bitcoin and Ethereum spot ETFs in April 2024, and supports in-kind subscriptions and redemptions, further solidifying its position as a virtual asset hub. As of 2025, the trading volume of the 12 licensed platforms has exceeded HKD 640 billion.
Mainland China's Virtual Currency Regulatory Policy: Comprehensive Ban and Risk Prevention
In stark contrast to Hong Kong's open policy, mainland China has comprehensively banned virtual currency transactions and related services since September 2021. People's Bank of China (PBOC) and nine other departments jointly issued a notice clarifying that virtual currencies do not have the same legal status as legal tender, and any virtual currency-related business activities are illegal financial activities and are strictly prohibited. This ban covers not only domestic virtual currency transactions but also overseas virtual currency exchanges providing services to residents within China via the internet.
On February 6, 2026, People's Bank of China (PBOC) and seven other ministries jointly issued the "Notice on Further Preventing and Disposing of Risks Related to Virtual Currencies and Other Matters" (referred to as "Document No. 42"), which, while repealing Document No. 237 from 2021, generally continued the regulatory approach of "risk priority, principled prohibition." Document No. 42 added a requirement that, without approval, domestic entities and their controlled overseas entities are not allowed to issue virtual currencies overseas. At the same time, virtual currency "mining" activities continue to be rectified, with a comprehensive review and shutdown of existing projects, and a strict prohibition on new projects.
Although the China Securities Regulatory Commission (CSRC) simultaneously issued the "Regulatory Guidelines on Overseas Issuance of Asset-Backed Securities Tokens for Domestic Assets" (referred to as "Order No. 1") on February 6, 2026, conditionally opening up overseas Real World Asset (RWA) tokenization businesses, this is limited to overseas issuance and has a limited scope of eligible participants, while domestic virtual currency activities remain comprehensively prohibited. Mainland Chinese regulatory authorities believe that virtual currency trading and speculation activities disrupt economic and financial order, breed illegal activities such as gambling, illegal fundraising, fraud, pyramid schemes, and money laundering, posing threats to social stability and financial risks.
Comparison of Hong Kong and Mainland China Policies
Hong Kong and mainland China have adopted distinctly different strategies for virtual asset regulation. Hong Kong is committed to embracing virtual asset innovation under a strict regulatory framework, attracting global Web3 enterprises and investors, and building a compliant market through licensing regimes, ETF products, and other means. Mainland China, on the other hand, adheres to a comprehensive ban on virtual currency transactions and related financial activities, focusing on preventing financial risks and maintaining social stability, with explorations only in specific, controlled areas of overseas RWA issuance. This differentiated policy reflects the different considerations of the two regions in terms of financial openness, risk appetite, and economic development strategies.
