Regulatory momentum in Asia’s financial hub is back in focus as the hong kong crypto sector records its first new platform approval in months.
Victory Fintech gains SFC green light
The Hong Kong Securities and Futures Commission, or SFC, has granted Victory Fintech a key license, marking the regulator’s first new approval for a crypto platform since June last year.
According to the SFC’s public registry of licensed crypto platforms, the authorization went to Victory Fintech (VDX), an affiliate of publicly listed financial services group Victory Securities, which trades under stock code 8540 in Hong Kong.
Moreover, Victory has now obtained permission to operate a digital asset trading platform, expanding the city’s institutional-grade infrastructure for virtual assets. The registry shows that the approval was recorded on a Friday, underscoring the methodical pace at which the regulator adds new names.
First addition to the SFC register since June 17 2023
The SFC’s database indicates that this is the first new entry on the list of approved crypto firms since June 17 2023. That gap highlights how selective the regulator has been in opening Hong Kong’s market to retail-facing virtual asset platforms.
However, the total number of platforms on the registry has now risen to 12, reflecting gradual but steady growth in the officially sanctioned segment of the market. This figure includes Bullish (BLSH), the exchange operator whose parent company is listed on the New York Stock Exchange.
The SFC regime has quickly become a reference point for other major jurisdictions watching how Hong Kong handles crypto licensing process design. That said, the latest approval for Victory Fintech VDX also underscores how difficult it remains to secure a place on the official list.
A strict regulatory regime shapes the Hong Kong market
Hong Kong introduced its current framework for supervising companies that provide crypto services in 2023, reshaping the landscape for every aspiring crypto exchange hong kong operator. Under this model, any trading venue targeting local users must obtain a specific SFC authorization and comply with detailed investor-protection rules.
At launch, Hashkey Exchange and OSL Digital Securities became the first two platforms to receive full approval under the new rules. Since then, the SFC has added only a limited number of new names, reinforcing the perception that it runs a strict regulatory regime by global standards.
Moreover, the regime’s toughness has already prompted high-profile pullbacks. Both OKX and Bybit, two of the world’s better-known exchanges, withdrew their Hong Kong license applications in May 2024, according to public disclosures and regulatory records.
Impact on the broader hong kong crypto landscape
The approval of Victory Fintech VDX is significant for the broader hong kong crypto ecosystem, because it enlarges the pool of officially recognized platforms in a tightly controlled environment. In practice, it shows that new entrants can still clear the SFC’s bar if they meet the regulator’s operational, compliance and investor-protection requirements.
However, with only 12 approved platforms so far, market access remains limited for firms seeking to serve local investors under the city’s onshore license. Observers will be watching how the registry evolves through 2024 and beyond, as Hong Kong balances innovation with risk management in its virtual asset sector.
In summary, Victory Fintech VDX’s new SFC authorization ends a long pause in additions to Hong Kong’s official list of crypto platforms, while underlining that the bar for entry into the regulated market remains among the highest of any major financial center.
