Hong Kong Grants Crypto License to Victory Fintech, Expands Regulated Digital Asset Market

TheNewsCryptoPublished on 2026-02-17Last updated on 2026-02-17

Abstract

Hong Kong's Securities and Futures Commission (SFC) has granted a cryptocurrency trading license to Victory Fintech, a publicly listed financial services company. This marks the first such license issued since June 2025, bringing the total number of licensed crypto trading platforms in Hong Kong to 12. The city introduced a strict crypto licensing regime in 2023, requiring all virtual asset trading platforms to obtain SFC approval. Due to stringent compliance requirements, major global exchanges like OKX and Bybit withdrew their applications in 2024. Unlicensed operations have been treated as a criminal offense since June 2024. Regulators are gradually expanding permitted crypto services, now allowing licensed brokers to offer virtual asset margin financing—initially only with BTC and ETH as collateral—and perpetual contracts to professional investors under strict guidelines. Hong Kong aims to balance innovation with investor protection, maintaining a tightly controlled regulatory environment. Future plans include introducing draft legislation in 2026 to regulate crypto advisory services. Currently, no stablecoin issuers have been approved by the Hong Kong Monetary Authority.

Hong Kong’s Securities and Futures Commission (SFC) has approved a license to a cryptocurrency trading platform for Victory Fintech, which is a publicly listed financial service company. Since June 2025, this was the first license issued by SFC, with a total of 12 licensed crypto trading platforms in Hong Kong.

Strict Crypto Rules of Hong Kong

Hong Kong introduced its crypto licensing regime in 2023. Under this framework, all the virtual asset trading platforms must obtain formal approval from the SFC to operate, which makes this system one of the strictest among other global hubs. Major global exchanges like OKX and Bybit withdrew their applications in 2024 due to the strict compliance requirements, and since June 2024, the unlicensed crypto platform in Hong Kong has been treated as a criminal offense.

The approval for Victory Fintech came right after the Hong Kong regulators gradually expanded permitted crypto services. Recently, SFC announced that the licensed brokers can now offer virtual asset margin financing, and only BTC and ETH are initially approved as collateral. Now platforms can also offer perpetual contracts to professional investors under strict guidelines. This shows that Hong Kong is carefully broadening the crypto products in the market under tight control.

Future regulation plans

Hong Kong regulators are planning to implement more rules. In January, Christopher Hui, who was the Financial Services and Treasury secretary, announced that authorities are planning to introduce draft legislation in 2026 to regulate the firms offering crypto advisory services. However, right now, Hong Kong’s Monetary Authority has not yet approved any stablecoin issuers.

Hong Kong aims to balance innovations with strong investor protection by approving a license to Victory Fintech. Hong Kong remains with strict but structured crypto regulations, with only fully compliant firms allowed to operate.

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TagsDigital AssetHong KongMarket

Related Questions

QWhat is the significance of Victory Fintech receiving a crypto license from Hong Kong's SFC?

AVictory Fintech is the first company to receive a crypto trading license from Hong Kong's Securities and Futures Commission (SFC) since June 2025, bringing the total number of licensed platforms to 12, which expands the regulated digital asset market in the region.

QWhy did major global exchanges like OKX and Bybit withdraw their applications in Hong Kong?

AOKX and Bybit withdrew their applications due to the strict compliance requirements of Hong Kong's crypto licensing regime, which mandates formal SFC approval for all virtual asset trading platforms to operate legally.

QWhat new services can licensed brokers in Hong Kong now offer according to recent SFC announcements?

ALicensed brokers can now offer virtual asset margin financing with BTC and ETH initially approved as collateral, and they can also provide perpetual contracts to professional investors under strict guidelines.

QWhat future regulatory plans did Christopher Hui announce for Hong Kong's crypto market?

AChristopher Hui, the Financial Services and Treasury secretary, announced that authorities plan to introduce draft legislation in 2026 to regulate firms offering crypto advisory services.

QHow does Hong Kong's approach to crypto regulation balance innovation and investor protection?

AHong Kong aims to balance innovation with strong investor protection by maintaining strict, structured crypto regulations that allow only fully compliant firms, like Victory Fintech, to operate in the market.

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