Hong Kong Grants First Crypto License Since June 2022
Hong Kong’s Securities and Futures Commission (SFC) has made a significant move in the crypto landscape. On Friday, the SFC issued a crypto license to Victory Fintech (VDX). This marks the first license granted since June 17, 2022.
Details of the Crypto License Grant
Victory Fintech is an affiliate of the publicly listed firm Victory Securities (8540). The license allows Victory Fintech to operate a digital asset trading platform. This approval adds to Hong Kong’s growing list of licensed crypto entities.
Regulatory Context
Hong Kong established its current regulatory framework for crypto service providers in 2023. The SFC already approved two prominent platforms, Hashkey Exchange and OSL Digital Securities, earlier this year. Currently, there are a total of 12 platforms listed in the SFC’s registry.
Industry Implications
- The recent licensing move reinforces Hong Kong’s commitment to regulating the crypto industry.
- Victory Fintech joins the ranks of notable companies, including Bullish (BLSH), which is listed on the New York Stock Exchange.
- This regime is recognized as one of the strictest among global financial jurisdictions.
Market Reaction
Interestingly, several prominent exchanges have recently withdrawn their licensing applications. Both OKX and Bybit opted out in May 2024, highlighting the challenges in navigating Hong Kong’s rigorous regulatory environment.
As the crypto market evolves, Victory Fintech’s new license could potentially recalibrate Hong Kong’s position as a hub for digital asset trading.
