Hong Kong’s Securities and Futures Commission (SFC) has granted licenses to four virtual asset trading platforms (VATPs), marking another step in its accelerated regulatory framework, according to a December 18 statement.
The licensed platforms include Accumulus GBA Technology Ltd, DFX Labs Company Ltd, Hong Kong Digital Asset EX Limited and Thousand Whales Technology (BVI) Ltd.
This brings the total number of licensed crypto trading platforms in the Asian city that are allowed to serve retail clients to seven, including HashKey Group, OSL and the Hong Kong Virtual Asset Exchange (HKVAX).
Licensing regimes
The SFC stated that the newly licensed companies underwent stringent on-site inspections earlier this year as part of the guidelines introduced in June. The inspections revealed areas for improvement, which the companies have addressed to secure their limited licenses.
The licenses come with initial restrictions, but these will be lifted after the platforms pass a second-stage review by third-party reviewers. The process ensures that the platforms meet the required regulatory standards for full operational functionality.
The SFC emphasized that VATPs must conduct vulnerability assessments and penetration testing through independent third parties. These assessments are critical to maintaining safety and are consistent with global international standards.
Eric Yip, SFC Executive Director of Intermediaries, stated that the licensing process involved close collaboration with the VATPs’ leadership teams. He highlighted the Commission’s dual focus on protecting investors and promoting growth in Hong Kong’s virtual asset ecosystem.
Jippie said:
“We strive to strike a balance between protecting investors’ interests and facilitating the continued development of the virtual asset ecosystem in Hong Kong.”
Meanwhile, this development aligns with the SFC’s broader plan to expand licensing for crypto businesses by the end of the year. In October, the regulator announced that 11 additional VATPs were being considered for licensing, with approvals expected to be rolled out in batches.
The SFC’s proactive approach highlights Hong Kong’s commitment to becoming a global hub for virtual asset innovation, while maintaining robust investor safeguards.