Hong Kong's Virtual Asset Regulatory Framework Continues to Improve
Since the Hong Kong SAR Government issued its policy statement on the development of virtual assets in October 2022, it has continuously advanced the construction and improvement of its virtual asset regulatory framework, aiming to promote innovation and sustainable development in the virtual asset industry. This series of initiatives clearly establishes Hong Kong's leading position in the digital asset sector.
Key milestones include:
- VATP Licensing Regime Takes Effect: On June 1, 2023, the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance officially came into effect. Under this ordinance, all virtual asset trading platforms (VATPs) operating in Hong Kong or actively promoting services to Hong Kong investors must hold a license to operate legally.
- Retail Investor Participation: The new regime allows licensed virtual asset trading platforms to offer services to retail investors, subject to strict investor protection measures. These measures include assessing investors' knowledge of virtual assets and limiting trading to "eligible large virtual assets."
- Stablecoin Regulation: The Hong Kong Monetary Authority (HKMA) launched a stablecoin issuer sandbox in March 2024. The Stablecoin Ordinance is expected to take effect in August 2025, at which point institutions issuing fiat-pegged stablecoins or HKD-pegged stablecoins in Hong Kong will need to apply for a license.
- Spot Virtual Asset ETFs: Asia's first spot virtual asset ETFs were successfully listed in Hong Kong in April 2024, providing investors with regulated virtual asset investment channels.
- Regulatory Roadmap: The Hong Kong SFC issued the "ASPIRe" roadmap in February 2025, and the Hong Kong SAR Government released the "Hong Kong Digital Asset Development Policy Statement 2.0" in June 2025, further reaffirming its vision to build Hong Kong into a global innovation hub for digital assets.
Overview of Hong Kong's Licensed Virtual Asset Trading Platforms
As of May 2026, the number of officially licensed virtual asset trading platforms listed on the Hong Kong SFC's website has increased to 13. These platforms operate under the strict supervision of the SFC, providing investors with a relatively secure trading environment. Key licensed platforms include:
- OSL Digital Securities Limited (OSL): As one of the first virtual asset exchanges licensed by the SFC in Hong Kong, OSL offers diversified services such as digital asset brokerage, custody, and trading, catering to retail, professional, and institutional clients. Its reference trading fee is approximately 0.2%.
- HashKey Digital Asset Group Limited (HashKey Exchange): Also one of the first virtual asset exchanges licensed by the SFC in Hong Kong, HashKey Exchange provides comprehensive virtual asset trading services for retail and professional investors. As of the end of 2024, its total trading volume exceeded HKD 600 billion, making it one of the highest-volume licensed exchanges in Hong Kong. As of today (September 17, 2026), the platform has launched HKDAP, a regulated HKD stablecoin, for deposit and withdrawal functions. Its trading fees start from as low as 0.08%, with retail users paying approximately 0.23%.
- Other Licensed Platforms: Including HKVAX, Bullish, VDX (Victory Fintech), PantherTrade, YAX, NewBX Limited, Accumulus, DFX Labs Company Limited, Hong Kong Digital Asset Exchange Group Limited, Thousand Whales Technology (BVI) Limited, BGE, Bixin.com, EX.IO, etc.
These licensed platforms operate under the SFC's principle of "same business, same risk, same rules," ensuring market fairness and transparency.
Beware of High-Risk "Crypto Margin Trading Platforms" and Scams
Despite significant progress in virtual asset regulation in Hong Kong, investors must remain highly vigilant against "crypto margin trading platforms" present in the market. These platforms often promise high returns, enticing users to invest through leveraged trading or fund custody, but their operating models are often opaque, lacking necessary regulation, and are highly prone to capital losses.
Hong Kong regulators have repeatedly reminded investors to be wary of scams such as "virtual trading" margin platforms. These platforms may pose the following risks:
- Unauthorized: Most margin trading platforms do not hold any licenses from regulatory bodies, raising questions about their legality.
- High Leverage Risk: Offering extremely high leverage ratios, which can lead to rapid liquidation and loss of all principal during market fluctuations.
- Fund Security Risks: Funds may not be properly safeguarded, with risks of platform exit scams, fund theft, or inability to withdraw funds.
- Information Asymmetry: Platforms may mislead investors through data manipulation, false advertising, and other means.
Before participating in any virtual asset investment, investors must verify the license information of relevant platforms through the official website of the Hong Kong SFC and fully understand the inherent risks of virtual asset investments. Any margin trading platform that promises "guaranteed principal and high interest" or "no-loss profits" should be viewed with extreme skepticism to avoid falling into scam traps by pursuing short-term high returns.
