The global cryptocurrency market is undergoing a transformative phase, with regulatory clarity becoming a key driver of institutional adoption and market confidence. Nowhere is this shift more evident than in Hong Kong, where the May 31, 2025 deadline for virtual asset trading platform (VATP) licensing has reshaped the competitive landscape. As the window for compliance closes, 24 companies have formally applied for licenses—joining two already licensed platforms, Hashkey and OSL—to form the foundation of Hong Kong’s regulated digital asset ecosystem.
This moment marks a pivotal turning point: unlicensed platforms must cease operations by the deadline, while compliant players position themselves for long-term growth in Asia’s most strategic financial hub.
Native Web3 Players: Over Half of Top Exchanges Apply
A significant portion of the 24 applicants come from the native Web3 ecosystem—established crypto-native firms with deep technical expertise and global user bases. According to data from CoinMarketCap, over half of the top 12 exchanges have submitted applications, signaling a strong push toward institutional legitimacy.
Among them are major names such as:
- Bybit
- OKX
- Gate.io
- Kucoin
- HTX (formerly Huobi)
- Bitget
- Bullish
- Crypto.com
- HKVAEX
These platforms bring mature infrastructure, advanced trading features, and extensive digital asset offerings. However, Hong Kong’s regulatory framework imposes strict limitations—particularly on permitted tradable tokens and a three-year operational track record requirement before full retail access is granted.
👉 Discover how leading crypto platforms are adapting to Hong Kong’s strict compliance rules.
Notably absent from the list are Binance, Coinbase, and Kraken—though their absence may reflect strategic timing rather than disinterest. For those who have applied, the challenge lies in balancing innovation with compliance, especially under the Securities and Futures Commission’s (SFC) RO (Responsible Officer) regime, which demands high-caliber local leadership.
Other notable entrants include:
- Matrixport, founded by Jihan Wu (Bitmain co-founder), which filed its application on February 26 to offer digital asset management, trading, and custody services.
- DFX Labs, led by COO Simon Au Yeung, a Wharton graduate and former CEO of Blockchain Finance and BGE.
- Bixin.com (NewBX Limited), a subsidiary of Bixin Group originating from HaoBTC (founded in 2014), known for its popular hardware wallet Onekey.
While these firms excel in technology and user experience, they face hurdles in localizing operations, meeting capital requirements, and navigating prolonged approval timelines.
Traditional Financial Institutions Enter the Arena
Beyond crypto-native firms, Hong Kong’s traditional financial sector is making bold moves into regulated digital assets—bringing credibility, institutional networks, and risk management rigor.
Key players include:
HKVAX
Approved in principle by the SFC in August 2024 for Type 1 and Type 7 regulated activities, HKVAX became the third licensed virtual asset exchange in Hong Kong. Led by CEO Wu Weiliang—a former leader at CoinSuper Premium with experience at Morgan Stanley and JPMorgan—and CTO Liu Cheng, who hails from Alibaba and Ant Group, HKVAX has raised multiple rounds since 2020. Reports suggest backing from a mainland mining conglomerate and entertainment-linked capital.
VDX
Backed by Victory Securities, VDX operates a profitable virtual asset business with an average monthly turnover of $10 million. Its team has been active since August 2021, focusing exclusively on B2B services. The goal? For digital assets to contribute 20% of Victory Securities’ revenue within three years.
BGE
A wholly owned subsidiary of HKE Holdings (a Hong Kong-listed company), BGE is chaired by Lian Haomin, a holder of SFC Types 1, 4, and 9 licenses. With over 120 team members dedicated to virtual assets post-acquisition in 2021, BGE aims to launch its platform in Q1 2025 and expand into Southeast Asia.
HKbitEX
Founded by ex-Hong Kong Exchange professionals, including CEO Gao Han (involved in Stock Connect and Bond Connect), HKbitEX is part of Tai Chi Capital. The firm launched PRINCE, Hong Kong’s first SFC-approved real estate STO token, showcasing its innovative approach to asset tokenization.
MeexMeex
Combining crypto veterans and Hong Kong financial talent, MeexMeex is backed by local conglomerates. CEO Jason Feng was formerly COO of Kaisa Group; CTO Lu Zhichao served as Tech Director at Bybit; and operations lead Vince Lam previously worked at HKbitEX.
These institutions bring trust, client networks, and compliance discipline—critical advantages in a market still recovering from scandals like JPEX. However, they may lag in technological agility compared to pure-play crypto firms. Additionally, building secure, compliant platforms requires substantial investment in tech, security, monitoring, and customer support.
Mainland Firms Expand into Hong Kong’s Regulated Market
Mainland Chinese fintech companies are also seizing the opportunity to enter Hong Kong’s regulated Web3 space—leveraging their scale, user bases, and digital innovation capabilities.
Notable entrants:
BitV
Operational since May 2023, BitV’s application team combines executives from local securities firms with top-tier crypto compliance experts. Its leadership includes alumni from Lehman Brothers, RBC, Bank of China International, and holds multiple SFC licenses (1, 2, 4, 5, 7, 9).
Accumulus
A subsidiary of Yunzhanghu (Cloud Account Technology), ranked among China’s Top 500 Enterprises. Yunzhanghu serves 82 million freelancers across 120 countries, generating over HK$110 billion in revenue in 2022. Its Hong Kong arm secured over HK$11 billion in outbound investment quotas and filed its VATP application on December 6, 2023. Chairman Yang Hui is a National Committee member of the Chinese People’s Political Consultative Conference.
Tiger Brokers & Futu Securities
Tiger Brokers received upgraded SFC approval in January 2025 to allow professional investors to trade digital assets on Tiger Trade. It manages $18.9 billion in assets across 865,500 funded accounts. Meanwhile, Futu’s subsidiary PantherTrade submitted its application on November 15, 2024, with directors linked to JD Securities and Huobi Asset Management.
xWhale
A joint venture between Sina-affiliated华盛证券 (UP Fintech) and BusyWhale, xWhale targets institutional and retail investors with dual proprietary systems: an order book and RFQ/negotiation protocol. With around 2 million registered users in Hong Kong and peak DAUs of 600,000, it aims to bridge traditional finance with digital assets.
These firms benefit from strong product design skills and large existing user bases—but must adapt to stricter regulatory scrutiny than they faced on the mainland.
The Road Ahead: Compliance Challenges and Strategic Positioning
Despite enthusiasm, the path to full compliance remains challenging. Since 2021, reported crypto-related crimes in Hong Kong have surged—from 1,397 cases to 3,415 in 2023, involving nearly RMB 4.4 billion (~$611 million). The **JPEX scandal**, which cost investors $180 million, underscored the risks of lax oversight.
To prevent "bad money driving out good," regulators must ensure licensed platforms remain competitive through:
- Incentives for compliant innovation
- Inter-agency coordination
- Reduced compliance friction
Only licensed platforms can legally serve Hong Kong clients after May 31, 2025. Unlicensed activity is a criminal offense.
👉 See how compliant platforms are preparing for the next bull cycle under strict regulations.
While Bitcoin recently hit an all-time high above $69,000—surpassing Coinbase’s market cap—many applicants may miss this cycle’s peak due to lengthy approval processes. Success will depend on long-term strategic patience, robust cash flow, and execution excellence.
FAQ: Understanding Hong Kong’s Virtual Asset Licensing Landscape
Q: What happens if a platform doesn’t get licensed by May 31?
A: Any unlicensed platform must cease operations targeting Hong Kong users. Resuming services requires full SFC approval.
Q: Can retail investors use these platforms now?
A: Only licensed platforms like Hashkey Exchange can serve retail clients. Most applicants are still awaiting approval and cannot onboard retail users yet.
Q: How does Hashkey Exchange maintain compliance and security?
A: Hashkey has operated without downtime or incidents, offers seamless HKD on/off-ramps to avoid “dirty coin” risks, and supports over HK$15 billion in custodied assets.
Q: Why aren’t Binance or Coinbase applying?
A: Their absence doesn’t imply disengagement—they may be pursuing alternative structures or waiting for clearer regulatory signals.
Q: What role do licensed platforms play in ETF development?
A: Platforms like Hashkey act as custodians and infrastructure providers for BTC spot ETFs, partnering with over 10 major brokers.
Q: Is it safe to invest via these new platforms?
A: Regulated platforms undergo rigorous checks on custody, risk management, and anti-money laundering—making them far safer than unregulated alternatives.
With Bitcoin’s rally highlighting institutional demand, the race is no longer about who enters first—but who builds sustainably under regulation. The future belongs to those who combine innovation with integrity.
👉 Learn how top-tier platforms are shaping the future of compliant crypto trading.