Licensed Crypto Exchanges and Applicants in Hong Kong: A Complete 2025 Guide

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The Hong Kong virtual asset market has entered a new era of regulation and transparency. As of 2025, the Securities and Futures Commission (SFC) has firmly established its oversight over virtual asset trading platforms (VASPs), reshaping the landscape for crypto exchanges operating in the region. With the February 2024 licensing deadline now behind us, only compliant platforms can legally serve Hong Kong investors. This guide provides a comprehensive overview of licensed crypto exchanges, active applicants, and withdrawn applications, helping you navigate the evolving regulatory environment with confidence.

Hong Kong’s Regulatory Framework for Crypto Exchanges

The SFC’s regulatory framework for virtual asset trading platforms emphasizes investor protection, market integrity, and anti-money laundering (AML) compliance. All platforms must meet stringent requirements, including:

Platforms that failed to submit applications by 29 February 2024 were required to cease operations by 31 May 2024 under transitional arrangements. Continuing unlicensed operations is a criminal offense.

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Investors are strongly advised to verify a platform’s status using the SFC’s official resources:

Trading on unlicensed or withdrawn platforms carries significant financial and legal risks.

Two Fully Licensed Crypto Exchanges in Hong Kong

As of 2025, only two platforms hold full SFC licenses to operate as regulated virtual asset trading platforms:

OSL Digital Securities Limited

Licensed on 15 December 2020, OSL is a pioneer in Hong Kong’s regulated digital asset space. It offers trading services to institutional and professional investors, including spot trading, custody, and brokerage.

In July 2022, OSL made history by facilitating the first Security Token Offering (STO) in Hong Kong, issuing Ethereum-based tokens linked to Bitcoin performance. This milestone demonstrated the viability of blockchain-based securities within a regulated framework.

HashKey Digital Asset Group Limited

HashKey Exchange received its SFC license on 9 November 2022, becoming the second fully licensed platform. It serves institutional and professional clients with compliant spot trading and custodial services.

HashKey is part of the broader HashKey Group — the first digital asset firm globally to hold licenses in Hong Kong, Japan (FSA), and an operational exemption in Singapore (MAS). The group also facilitated the launch of the Bosera HashKey Bitcoin and Ethereum Spot ETFs, marking a major step toward mainstream crypto adoption.

17 Active Crypto Exchange License Applicants

While awaiting final approval, these platforms remain under SFC review. Investors should exercise caution when engaging with them.

These applicants represent a diverse mix of global players and local innovators aiming to meet Hong Kong’s high compliance standards.

Platforms That Withdrew Their License Applications

Several firms initiated the licensing process but ultimately withdrew. Trading on these platforms carries higher risk due to lack of regulatory oversight.

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Frequently Asked Questions (FAQ)

Q: Can unlicensed crypto exchanges still operate in Hong Kong?
A: No. All unlicensed platforms must have ceased operations by 31 May 2024. Continuing to operate is a criminal offense under SFC regulations.

Q: How can I verify if a crypto exchange is licensed in Hong Kong?
A: Visit the SFC’s official website and check the “List of Licensed Virtual Asset Trading Platforms” for up-to-date information.

Q: Is it safe to trade on applicant platforms?
A: The SFC warns investors to exercise caution. Only trade on fully licensed platforms for maximum protection.

Q: Why did major platforms like ByBit and HTX withdraw their applications?
A: While official reasons are not always disclosed, challenges may include compliance costs, complex requirements, or strategic business decisions.

Q: What happens if a platform withdraws its application after starting operations?
A: It must wind down its Hong Kong services immediately. Continued trading exposes users to legal and financial risks.

Q: Are retail investors allowed to use licensed platforms?
A: Yes. Both OSL and HashKey are authorized to serve retail clients under strict safeguards, including risk disclosures and suitability assessments.

The Future of Crypto in Hong Kong

Hong Kong remains committed to becoming a global Web3 and fintech hub. The SFC’s clear regulatory path encourages innovation while protecting investors. As more applicants progress toward full licensing, the market will likely see increased institutional participation and product innovation — including tokenized assets, ETFs, and decentralized finance (DeFi) integrations.

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With strong governance and strategic vision, Hong Kong is positioning itself as Asia’s premier destination for compliant digital asset innovation.

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