Hong Kong's securities regulator has approved four new cryptocurrency exchanges, marking a significant step in the city's efforts to position itself as a digital asset hub.
What Happened:The approvals come at a time when Bitcoin BTC/USD prices have surged, recently surpassing the $100,000 milestone.
The newly licensed platforms—Accumulus GBA Technology, DFX Labs, Hong Kong Digital Asset EX and Thousand Whales Technology—were added to the Securities and Futures Commission’s (SFC) updated list of approved virtual asset trading platforms (VATPs) on Thursday.
The move reflects Hong Kong's ongoing commitment to strengthening its virtual asset regulatory framework while balancing investor protection and business development.
Eric Yip, SFC's executive director of intermediaries said, “We have been proactively engaging with VATPs' senior management and ultimate controllers, which helps drive home our expected regulatory standards and expedite our licensing process for VATPs," Yip said. "We aim to strike a balance between safeguarding the interests of investors and facilitating continuous development for the virtual asset ecosystem in Hong Kong."
The approval mandates the exchanges to meet strict conditions, including rectification measures and independent assessments such as vulnerability and penetration tests before they can fully operate.
These four exchanges join the ranks of previously licensed platforms OSL, HashKey and HKVAX, bringing the total number of approved exchanges to seven.
Out of nearly 30 companies that pursued VATP licenses this year, many withdrew under the regulator's stringent requirements, including major platforms such as OKX and HTX.
Thousand Whales Technology, the operator of crypto trading platform EX.IO, stands out with backing from Valuable Capital Group, a brokerage under Sina Corporation—the company behind Weibo, one of China's leading social media platforms.
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Why It Matters: While Hong Kong has been making strides in crypto regulation, the journey has not been without challenges.
In April, the city allowed crypto exchange-traded funds (ETFs), a milestone that initially gave it a competitive edge.
However, the U.S. quickly followed with similar ETFs that outpaced Hong Kong's in scale and market impact.
Regulating over-the-counter (OTC) virtual asset trading has also proven complex.
Initially, Hong Kong's Customs and Excise Department was set to oversee OTC services, but industry feedback prompted the SFC to take a more active role in supervision.
The city is also progressing with stablecoin regulation.
A new bill introduced into the Legislative Council mandates that firms must obtain licenses from the Hong Kong Monetary Authority before issuing fiat-referenced stablecoins or tokens pegged to the Hong Kong dollar.
The approval shows the city's commitment to building a regulated and competitive environment that supports both innovation and investor confidence.
Eric Chen, CEO and co-founder of Injective Labs said in a note to Benzinga that “by expanding the number of licensed platforms, Hong Kong is positioning itself as a key hub for bridging traditional finance and blockchain technology. It's a clear sign that the city is serious about fostering growth in the crypto space while maintaining strong regulatory standards.”
According to Chen, Hong Kong's approval of more cryptocurrency exchanges signals a broader trend toward regulatory maturity and the legitimization of digital assets.
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