Hong Kong’s Securities and Futures Commission (SFC) has once again opened its doors to the cryptocurrency world, adding Victory Fintech Company Limited to its list of licensed virtual asset trading platforms. This marks the first new addition to the list since June 2025, signaling a cautious but steady shift in the regulatory landscape of one of the world’s most stringent jurisdictions for crypto.
A New Era for Hong Kong’s Crypto Regulation
The inclusion of Victory Fintech brings the total number of licensed platforms to 12, a significant milestone in a region that has been notoriously tough on cryptocurrency exchanges. Since June 2024, the SFC has pursued unlicensed virtual asset trading platforms as a criminal offense, leading to the closure or withdrawal of many exchanges, including notable players like OKX and Bybit.
Regulatory Scrutiny and Compliance
Despite the challenging environment, Hong Kong’s financial authorities have been working diligently to establish a robust regulatory framework. In January, Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, announced plans to submit a draft ordinance for providers offering crypto advisory services in 2026. This move underscores the government’s commitment to balancing innovation with investor protection.
Expanding Services for Licensed Platforms
The SFC’s recent decision to allow licensed brokers to provide virtual asset margin financing and perpetual contracts to professional investors is a significant step forward. Initially, only Bitcoin (BTC) and Ether (ETH) will be eligible as collateral for margin financing, a move designed to mitigate risks while fostering growth in the sector.
Perpetual Contracts and Professional Investors
The framework for trading platforms to offer perpetual contracts to professional investors further demonstrates the SFC’s willingness to adapt to the evolving crypto market. These contracts, which are derivative financial instruments, allow investors to speculate on the price movements of cryptocurrencies without owning the underlying assets.
Challenges and Opportunities
While the addition of Victory Fintech is a positive sign, the absence of licensed stablecoin issuers, as noted by the Hong Kong Monetary Authority, highlights ongoing regulatory hurdles. Stablecoins, which are pegged to traditional currencies, are crucial for facilitating seamless transactions and reducing volatility in the crypto ecosystem.
However, the SFC’s progressive stance on margin financing and perpetual contracts suggests that the regulatory environment is becoming more conducive to innovation. This could attract more global crypto firms to consider Hong Kong as a viable market, potentially boosting the local economy and cementing the city’s position as a leading financial hub.
Looking Ahead
The future of Hong Kong’s crypto landscape remains uncertain but promising. As the SFC continues to refine its regulatory framework, the addition of Victory Fintech and the expansion of services for licensed platforms are clear indicators of a more supportive environment. Investors and crypto enthusiasts alike will be watching closely to see how these developments unfold, with the hope that they will lead to a more stable and innovative market.
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