The Hong Kong Securities and Futures Commission (SFC) has taken a significant step forward in shaping the region’s digital asset landscape by granting operational licenses to two virtual asset trading platforms—PantherTrade and Yax—on January 27, 2025. This marks the first set of crypto exchange licenses issued in the new year, reinforcing Hong Kong’s commitment to building a regulated, secure, and innovation-driven virtual asset ecosystem.
These approvals confirm that both platforms are now officially registered under the SFC’s regulatory framework and comply with the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). The move underscores Hong Kong’s ongoing efforts to balance innovation with investor protection in the fast-evolving blockchain space.
Yax Emerges as a Regulated Player Under Tiger Brokers
Yax (Hong Kong) Limited operates as a subsidiary of Tiger Brokers (HK) Global Limited, a well-established name in online brokerage services. With this newly acquired license, Yax is poised to launch full-scale operations offering securities trading and automated trading services to retail and institutional clients.
Tiger Brokers emphasized its strategic vision behind establishing Yax, highlighting the company's dedication to advancing digital asset infrastructure and supporting Hong Kong’s ambition to become a leading digital asset hub in Asia. The firm reaffirmed its focus on delivering compliant, transparent, and innovative financial products tailored for the modern investor.
Wu Tianhua, Co-Founder and CEO of Tiger Brokers, commented on the growing momentum in the crypto industry:
“The rapid evolution of blockchain technology and digital assets presents immense opportunities. By launching Yax as a dedicated platform, we’re not only investing in the future of finance but also contributing to Hong Kong’s position as a global fintech leader.”
Kevin Liu Kai, CEO of Yax (Hong Kong), expressed confidence in the platform’s capabilities post-licensing:
“This recognition from the SFC validates our robust compliance framework and technological infrastructure. We’re now empowered to deliver secure, transparent, and high-speed trading experiences while enhancing custody solutions for our users.”
👉 Discover how licensed platforms are reshaping digital asset trading in Asia.
PantherTrade Achieves VASP Status Under AMLO
PantherTrade has also confirmed it has obtained VASP (Virtual Asset Service Provider) status under AMLO, aligning itself with Hong Kong’s stringent regulatory standards. While the exchange has not disclosed detailed operational updates, this licensing milestone positions PantherTrade as a compliant player in the city’s expanding virtual asset market.
As part of Hong Kong’s tiered regulatory approach, VASP-licensed platforms must adhere to strict requirements regarding know-your-customer (KYC) protocols, anti-money laundering (AML) safeguards, and custody of client assets—ensuring greater trust and accountability across the ecosystem.
Hong Kong Accelerates Push for More VASP Licenses
Following a wave of applications from global crypto firms, the SFC began formally licensing VASPs in 2024 under a regulatory regime introduced in 2023. The goal? To create a safe environment where retail investors can engage with digital assets without compromising security or transparency.
With the addition of PantherTrade and Yax, the total number of licensed VASPs in Hong Kong now reaches nine. Previously, four licenses were approved in December 2024, and another four in October 2024. Despite falling short of its initial target to issue 11 licenses by the end of 2024, the SFC remains committed to accelerating approvals—with plans to onboard more qualified providers by the end of 2026.
Julia Leung, SFC Chairperson, stressed that while the pace may be deliberate, consumer protection remains paramount:
“We maintain high licensing standards to ensure only credible, well-governed platforms serve Hong Kong investors. At the same time, we are engaging directly with applicants to streamline processes without compromising rigor.”
Building a Comprehensive Regulatory Framework
Hong Kong continues to lay the groundwork for a holistic digital asset policy. On January 21, 2025, the Legislative Council’s Finance Committee held discussions on proposed stablecoin regulations, signaling deeper oversight across all types of virtual assets.
Under the emerging framework, stablecoin issuers will be required to register with the Hong Kong Monetary Authority (HKMA) and adhere to strict guidelines, including:
- Maintaining sufficient reserve backing
- Complying with KYC, AML, and CTF standards
- Ensuring redemption mechanisms for holders
These measures aim to protect consumers while fostering innovation in payment technologies and decentralized finance (DeFi).
Competitive Landscape: Hong Kong vs. Singapore
A recent Bloomberg report highlights an intensifying rivalry between Hong Kong and Singapore as both cities vie to become Asia’s premier crypto hub.
While Hong Kong enforces rigorous evaluation processes for VASPs, Singapore has moved faster—issuing 13 licenses in 2024 alone, double the number from 2023. In contrast, Hong Kong has issued fewer than ten licenses since 2020.
Angela Ang, Senior Policy Advisor at TRM Labs, noted:
“Hong Kong’s regulatory approach is more restrictive, particularly around token listings, marketing practices, and custody rules. This caution may slow adoption compared to Singapore’s more pragmatic stance.”
Roger Li, Co-Founder of Satoshi Inc., added:
“High compliance costs and narrow profit margins make it challenging for some platforms to sustain operations under Hong Kong’s current model.”
Notably, major players like OKX and Bybit withdrew their license applications due to regulatory hurdles. Meanwhile, Singapore hosts a broader range of active platforms, including OKX, Anchorage, and BitGo.
Moreover, Hong Kong currently permits trading only in BTC and ETH for retail investors, whereas Singapore allows a wider array of tokens—giving it an edge in market attractiveness.
👉 See what it takes for exchanges to thrive under evolving global regulations.
FAQs: Understanding Hong Kong’s Crypto Licensing Shift
Q: What does a VASP license allow a crypto exchange to do in Hong Kong?
A: A VASP license permits regulated virtual asset trading platforms to legally offer services to retail investors, provided they meet strict AML, KYC, custody, and cybersecurity requirements set by the SFC.
Q: Why did some major exchanges like OKX pull out of Hong Kong’s licensing process?
A: Exchanges cited high compliance costs, restrictive rules on token listings, and limited profitability under current regulations as key reasons for withdrawing applications.
Q: How does Hong Kong’s crypto regulation compare to Singapore’s?
A: Hong Kong emphasizes investor protection through stricter controls, while Singapore adopts a more flexible, innovation-friendly approach—resulting in faster licensing and broader market access.
Q: Can retail investors trade any crypto asset in Hong Kong?
A: No. Currently, only Bitcoin (BTC) and Ethereum (ETH) are approved for retail trading on licensed platforms. Other tokens remain restricted.
Q: Are stablecoins regulated in Hong Kong?
A: Yes. Proposed regulations require stablecoin issuers to register with the HKMA, maintain full reserves, and comply with AML/KYC standards—aimed at ensuring stability and consumer trust.
Q: What is the SFC’s long-term goal for crypto licensing?
A: The SFC aims to license more compliant platforms by 2026, fostering a secure yet competitive environment that supports Hong Kong’s status as a global financial and digital asset center.
👉 Explore how top-tier compliance is redefining trust in digital finance.
Final Thoughts: Regulation as a Catalyst for Growth
Hong Kong’s measured but determined regulatory journey reflects a broader trend: the fusion of traditional finance with blockchain innovation. While progress may appear slower than in rival jurisdictions like Singapore, the emphasis on safety and structural integrity could pay long-term dividends.
By granting licenses to PantherTrade and Yax, the SFC sends a clear message—compliance is non-negotiable, but innovation is welcome within a responsible framework. As stablecoin rules take shape and more platforms seek approval, Hong Kong is steadily building the foundation for a mature, trusted digital asset market.
For investors and institutions alike, this evolving landscape offers both opportunity and reassurance—a regulated gateway to the future of finance.