Hong Kong regulator approves first crypto company license since June last year

Hong Kong’s Securities and Futures Commission (SFC) granted a crypto license to Victory Fintech (VDX), an affiliate entity of publicly listed financial services firm Victory Securities (8540).

Victory won permission to operate a digital asset trading platform on Friday, according to the SFC’s registry of licensed crypto firms, the first addition since June 17 last year.

Hong Kong introduced its current regime for the regulation of companies providing crypto services in 2023, with Hashkey Exchange and OSL Digital Securities the first two parties to receive approval.

There are now 12 approved platforms on the registry, including New York Stock Exchange-listed Bullish (BLSH), which is also the parent company of CoinDesk.

The regime has earned a reputation for being one of the strictest among major financial jurisdictions. Prominent exchanges OKX and Bybit both withdrew their applications for licensing in May 2024.