The Hong Kong Securities and Futures Commission (SFC) has granted preliminary approval to 11 cryptocurrency exchanges, allowing them to operate under a "deemed licensed" status. This marks a critical step toward issuing the first Virtual Asset Trading Platform (VATP) licenses since 2022, signaling Hong Kong’s commitment to regulating the crypto sector while fostering innovation.
Key Developments in Hong Kong’s Crypto Licensing Framework
Deemed Licensed Exchanges: Who Made the Cut?
Among the 11 exchanges, Crypto.com—originally founded in Hong Kong but now headquartered in Singapore—stands out as the largest platform on the list. Notably, it’s the only top-20 exchange by trading volume (per CoinGecko) still pursuing a Hong Kong license. Other prominent names include:
- Bullish (Gibraltar-based, with operations in Singapore and New York)
- HashKey (one of only two exchanges currently licensed for retail trading)
👉 Explore how these exchanges comply with Hong Kong’s regulations
Regulatory Timeline and Requirements
Under Hong Kong’s 2023 regulatory overhaul, exchanges must transition from "deemed licensed" to fully approved by submitting compliance documentation. Key deadlines include:
- June 1, 2024: Unlicensed exchanges were required to exit the market.
- Post-June 2024: Deemed-licensed platforms continue operations while awaiting final SFC approval.
Hong Kong’s Role as a Crypto Hub
Hong Kong is cementing its position as a global financial hub for digital assets, with initiatives like:
- Hosting major crypto conferences (e.g., CoinDesk’s Consensus 2025).
- Attracting firms like Bullish, which emphasizes the city’s strategic importance.
Michael Lau, Bullish’s Global Head of Sales, stated:
"Hong Kong is an important jurisdiction as a top-tier financial hub for our operations."
FAQ Section
Q1: Which crypto exchanges are fully licensed in Hong Kong?
A: As of 2024, only HashKey and OSL hold full retail trading licenses under the previous voluntary scheme.
Q2: What happens if an exchange doesn’t secure a license by the deadline?
A: Exchanges must cease operations in Hong Kong. The SFC mandates strict compliance to protect investors.
Q3: Why is Hong Kong attracting crypto businesses?
A: Its clear regulatory framework, financial infrastructure, and events like Consensus 2025 make it a magnet for virtual asset firms.
Q4: How does the "deemed licensed" status work?
A: It’s a provisional approval allowing exchanges to operate while completing the SFC’s licensing process.
👉 Learn more about Hong Kong’s evolving crypto regulations
Looking Ahead
Hong Kong’s phased licensing approach balances market growth with investor protection, setting a precedent for other financial centers. The 11 exchanges now face rigorous compliance checks before receiving full VATP licenses—a process that could reshape the region’s crypto landscape.
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- Deemed licensed
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- Bullish
- Virtual asset regulations