The Securities and Futures Commission (SFC) of Hong Kong officially issued operating licenses to two cryptocurrency trading platforms—PantherTrade and YAX—on January 27, 2025, further advancing the regulatory development of Hong Kong’s cryptocurrency market. Since the licensing program launched in mid-2024, the SFC has granted a total of seven Virtual Asset Trading Platform (VATP) licenses, establishing a more robust regulatory framework.
Stricter Regulatory Policies for Hong Kong Cryptocurrency Exchanges
Hong Kong aims to solidify its position as Asia’s hub for cryptocurrency and fintech innovation, and its regulatory policies are becoming increasingly stringent. According to public records, all licensed platforms must comply with the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) to ensure transaction security and market transparency.
Eric Yip, Executive Director of Intermediaries at the SFC, emphasized that regulators maintain active communication with cryptocurrency exchange executives to expedite licensing while upholding compliance standards. The core goal, he noted, is balancing investor protection with fostering the growth of the virtual asset ecosystem.
Currently, only four cryptocurrencies are officially approved for trading in Hong Kong: Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), and Chainlink (LINK).
Hong Kong’s Crypto Market Outlook: A Rising Global Financial Hub
Hong Kong has emerged as a pivotal player in global cryptocurrency and blockchain development, alongside the UAE and Singapore. Ivan Ivanov, CEO of WOW Summit, highlighted Hong Kong’s unique financial status and rigorous regulations as key factors attracting institutional investors and crypto startups.
👉 Discover how Hong Kong’s regulatory framework compares to global standards
Additionally, Hong Kong’s close economic ties with mainland China make it a gateway for global investors entering the Mandarin-speaking market. The government is also advancing stablecoin regulations, requiring issuers to obtain licenses and hold reserves in local banks to enhance transparency and investor confidence.
2025 Comparison of Top 6 Hong Kong Cryptocurrency Exchanges
Below is an analysis of six leading exchanges, helping investors choose the best platform for their needs.
| Exchange | Founded | Spot Daily Volume (HKD) | Derivatives Daily Volume (HKD) | Weekly Traffic | Fees | Supported Coins |
|---|---|---|---|---|---|---|
| Binance | June 2017 | 92.1B | 274.9B | 14.11M | 0.1% | 420 |
| Coinbase | June 2012 | 21B | 5.2B | 60K | 0.5% | 250 |
| Bybit | March 2018 | 30.9B | 103.1B | 700K | 0.1% | 655 |
| Gate.io | April 2013 | 16.6B | 16.2B | 402K | 0.1% | 2,197 |
| HashKey | 2018 | 500M | N/A | 60K | 0% | 23 |
| OSL | 2018 | N/A | N/A | <50K | 0% | 3 |
1. Binance: Global Leader with Unmatched Liquidity
Binance dominates the global market with 1.5B+ registered users and 50% of daily trading volume. It supports 350+ cryptocurrencies and 1,200+ trading pairs, offering 125x leverage for derivatives. While Binance lacks a Hong Kong license, its liquidity and speed make it ideal for traders of all levels.
2. Bybit: Low Fees and Strong Derivatives Focus
Bybit specializes in derivatives with 100x leverage and 0.1% fees. It accepts HKD deposits via credit cards, bank transfers, and PayMe. The platform plans to reapply for a Hong Kong license in Q1 2025.
👉 Explore Bybit’s competitive trading features
3. Gate.io: Diverse Coin Offerings
With 2,000+ listed coins, Gate.io provides leverage trading, IEOs, and perpetual contracts. It aims to secure a Hong Kong VASP license soon.
4. Coinbase: High Compliance for Institutional Investors
Coinbase, a publicly traded exchange, offers a user-friendly interface and educational resources but charges higher fees (0.5%).
5. HashKey: First Licensed Exchange in Hong Kong
HashKey, the first SFC-licensed platform, stores 98% of assets in cold wallets and supports HKD/USD deposits.
6. OSL: Rigorous KYC and Security Standards
OSL complies with SOC 2 Type 2 security protocols and mandates strict KYC verification.
AI and Regulatory Advancements Propel Hong Kong’s Crypto Market
In October 2024, Hong Kong’s Financial Services and Treasury Bureau (FSTB) introduced an AI regulatory framework to integrate fintech with traditional finance. Over 270 blockchain firms now operate in Hong Kong’s Cyberport district, reinforcing its status as a global blockchain hub.
FAQs
Q1: Can I use Binance in Hong Kong?
While Binance isn’t licensed in Hong Kong, investors can access crypto funds via licensed securities accounts partnering with authorized platforms like HashKey and OSL.
Q2: Is Bybit reliable?
Yes. Bybit employs multi-signature wallets, SSL encryption, and DDoS protection to safeguard user funds.
Q3: Which cryptocurrencies are legal in Hong Kong?
Only BTC, ETH, AVAX, and LINK are currently approved by the SFC.
Q4: How do I choose a crypto exchange in Hong Kong?
Consider factors like fees, supported coins, liquidity, and regulatory compliance. Licensed platforms (e.g., HashKey, OSL) offer higher security but fewer coin options.
Q5: What are Hong Kong’s stablecoin regulations?
Stablecoin issuers must obtain licenses and hold reserves in local banks to ensure transparency.