Licensed and Applied Crypto Exchanges in Hong Kong: A Comprehensive Guide

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The Hong Kong Securities and Futures Commission (SFC) has ushered in a new era for virtual asset trading platforms (VASPs), marking a pivotal shift toward regulated, transparent, and secure digital asset markets. With the 29 February 2024 licensing deadline now passed, only those crypto exchanges that submitted applications can continue operating in Hong Kong beyond 1 June 2024 under transitional arrangements.

This regulatory milestone underscores Hong Kong’s commitment to investor protection, market integrity, and the development of a compliant Web3 ecosystem. For users and investors, understanding which platforms are licensed, which are still under review, and which have withdrawn their applications is crucial for making informed decisions.

👉 Discover how regulated crypto platforms are shaping Hong Kong’s financial future.

Why Hong Kong’s Crypto Licensing Matters

Hong Kong’s move to regulate virtual asset trading platforms reflects its ambition to become a global fintech and digital asset hub. The SFC now requires all VASPs to meet strict criteria, including:

Investors are strongly advised by the SFC to only engage with SFC-licensed platforms or those on the official applicant list. Trading on unlicensed or withdrawn platforms carries significant risk, including potential loss of funds and lack of legal recourse.

The regulator maintains two key public resources:

These tools empower users to verify a platform’s regulatory status before depositing funds.

Two Fully Licensed Crypto Exchanges in Hong Kong

As of 2025, only two companies hold full SFC licenses to operate as virtual asset trading platforms in Hong Kong:

OSL Digital Securities Limited

Licensed on 15 December 2020, OSL is a pioneer in Hong Kong’s regulated digital asset space. It offers institutional and professional investors access to spot trading, brokerage, and prime services.

In July 2022, OSL made history by facilitating the first SFC-licensed private security token offering (STO) in Hong Kong, using Ethereum-based tokens tied to Bitcoin performance. This milestone demonstrated the viability of blockchain-based securities within a compliant framework.

HashKey Digital Asset Group Limited

HashKey Exchange received its SFC license on 9 November 2022, becoming the second fully licensed VATP. It provides regulated trading services for institutional and professional clients, focusing on bridging traditional finance with digital assets.

HashKey Group holds a unique distinction as the world’s first digital asset firm with licenses in Hong Kong, Japan (FSA), and an exemption under Singapore’s Monetary Authority (MAS). The exchange also facilitated the first physical subscriptions for the Bosera HashKey Bitcoin and Ethereum Spot ETFs, reinforcing its role in market innovation.

👉 See how leading exchanges are meeting Hong Kong’s strict compliance standards.

17 Active Crypto Exchange Applicants Under Review

While only two platforms are fully licensed, 17 companies have submitted applications and remain under SFC review. These applicants represent a diverse mix of local startups, regional players, and global firms eyeing Hong Kong’s regulated market:

These platforms are not yet authorized to serve retail investors but may operate under transitional rules pending final approval.

Crypto Platforms That Withdrew Their Applications

Several high-profile exchanges initially sought SFC licensing but later withdrew their applications, signaling strategic shifts or compliance challenges:

Platforms like ByBit and HTX had significant regional presence but chose to exit Hong Kong’s regulatory process, possibly due to stringent requirements or shifting business strategies.

FAQ: Your Questions Answered

What happens if a crypto exchange didn’t apply by 29 February 2024?

Exchanges that missed the deadline must cease operations in Hong Kong by 31 May 2024. Continuing unlicensed activity is a criminal offense under SFC regulations.

Can I use an exchange that applied but isn’t licensed yet?

While applicants can operate under transitional arrangements, the SFC advises limiting activity to fully licensed platforms like OSL and HashKey for maximum protection.

Is HKVAEX part of Binance?

No. Despite similarities in branding and code, HKVAEX operates independently. Binance has clarified it is not affiliated with HKVAEX.

Why did ByBit withdraw its application?

The SFC has not disclosed reasons. However, stringent compliance demands—such as custodial controls and AML frameworks—may have influenced the decision.

How can I check if a crypto exchange is licensed in Hong Kong?

Visit the SFC’s official website and consult the:

What are the risks of using unlicensed platforms?

Unlicensed platforms lack regulatory oversight, increasing risks of fraud, hacking, fund loss, and no legal recourse in disputes.

👉 Stay ahead—learn how to identify compliant crypto platforms in Asia.

Final Thoughts: Navigating Hong Kong’s Evolving Crypto Landscape

Hong Kong’s push for regulated virtual asset trading is reshaping the region’s fintech identity. With only two licensed exchanges and a growing pool of applicants, investors must remain vigilant. The SFC’s clear guidelines provide a roadmap for safe participation in this emerging market.

As Web3 adoption accelerates and spot ETFs gain traction, Hong Kong is positioning itself as a bridge between traditional finance and digital innovation—strictly on regulated terms. Whether you're an institutional player or a retail investor, aligning with compliant platforms is no longer optional—it's essential.