In Depth: Are Hong Kong’s Crypto Licenses Worth It?

As Hong Kong positions itself as a global crypto hub, the value of acquiring a crypto exchange license in the region remains debated. While Hong Kong’s government has high ambitions for the digital asset sector, industry insiders point out that the city’s strict compliance requirements and prohibition on serving users from the Chinese mainland have constrained the commercial potential for license holders [para. 1][para. 2]. Despite these limitations, Hong Kong’s attempt at creating a regulated crypto environment has attracted international attention for its efforts to stabilize an otherwise fragmented global crypto market. The city’s approach is less about market size and more about demonstrating leadership in regulatory standards [para. 3].

Hong Kong’s mandatory licensing regime for virtual asset trading platforms (VATPs) began in June 2023. This marked a shift from a more relaxed, experimental “sandbox” approach to a stricter system fostering transparency and compliance in the digital asset space [para. 4]. Notably, this stricter regulatory environment solidifies a regulatory divide between Hong Kong and the Chinese mainland, where crypto trading is still strictly banned [para. 4]. The regime mandates VATPs to secure licenses under both the Securities and Futures Ordinance and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, aiming to deter illicit activity and protect investors [para. 5]. Currently, 10 VATPs hold licenses in Hong Kong [para. 5].

The makeup of licensed exchanges highlights the increasing diversity of the local crypto industry [para. 6]. Veteran finance professionals established HashKey, HKVAX, and HKbitEX, while industry-native brands like OSL and Bullish also secured licenses. Other license holders include subsidiaries of major online brokerages, as well as tech and payment companies such as Accumulus and DFX Labs [para. 7]. OSL was the first to receive a license, dating back to December 2020, and is now nearly 30% owned by BGX Group Holding Ltd., a firm led by former banker Liu Shuai [para. 8]. HashKey, granted a license in late 2022, currently leads in trading volume among VATPs and has launched one of Hong Kong’s inaugural spot crypto exchange-traded funds in partnership with Bosera Asset Management [para. 9].

The remaining eight platforms received licenses between late 2024 and early 2025 and are still establishing their businesses [para. 10]. HKVAX and HKbitEX were co-founded by figures from leading financial institutions, while DFX Labs and Accumulus have backing from payment and HR tech companies [para. 11][para. 12]. Some platforms, such as EX.IO, PantherTrade, and YAX, are closely linked with well-known internet and brokerage firms. Bullish, the newest entrant (licensed in February), was founded by blockchain company Block.one and notable investors such as Peter Thiel’s Founders Fund; it acquired crypto news outlet CoinDesk in 2023 and is reportedly planning an IPO [para. 14].

However, acquiring a VATP license is capital- and compliance-intensive, with some firms reporting that it comes with costs running into tens of millions of Hong Kong dollars [para. 15][para. 16]. Because none of the licensed exchanges can serve mainland Chinese users—a massive potential market—many global players see limited upside in holding a Hong Kong license [para. 17][para. 21]. The mainland has enforced a complete ban on crypto trading since 2017 [para. 20], though some traders reportedly circumvent these bans using VPNs [para. 22].

Ultimately, Hong Kong’s regulatory framework stands as one of the most comprehensive in Asia [para. 23]. Yet, its future as a crypto capital may depend as much on political and regulatory developments in mainland China as on its own policies [para. 23].