The launch of Hong Kong’s virtual asset exchange licensing regime on June 1, 2023, marked a pivotal moment in the city's ambition to become a global Web3 hub. Under the mandatory licensing framework enforced by the Securities and Futures Commission (SFC), any platform offering virtual asset trading services to Hong Kong investors must now obtain formal approval. This regulatory clarity has attracted serious players aiming to operate within a compliant, transparent, and secure environment.
With strong geographical and economic ties to mainland China, Hong Kong offers unique advantages for crypto businesses seeking legitimacy and access to Asian markets. As of late 2023, two platforms—OSL Digital Securities Limited and Hashkey Exchange—have successfully obtained full licenses, while several others, including HKVAX, HKbitEX, HK BGE, and Victory Securities, are in advanced stages of application.
This article provides an in-depth look at the current landscape of Hong Kong’s licensed and soon-to-be-licensed virtual asset exchanges, highlighting their compliance milestones, strategic partnerships, and market positioning.
OSL: Pioneering Compliance and Institutional Trust
In August 2023, OSL Digital Securities Limited, a wholly-owned subsidiary of BC Technology Group, became the first virtual asset exchange in Hong Kong approved to serve retail investors. This milestone followed the SFC’s upgrade of its existing Type 1 (dealing in securities) and Type 7 (providing automated trading services) licenses.
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What sets OSL apart is its comprehensive compliance infrastructure:
- It is the only licensed digital asset platform in Hong Kong with a publicly listed parent company.
- All customer assets are insured and held separately from operational funds.
- Regular audits are conducted by one of the Big Four accounting firms.
- The platform has established partnerships with traditional financial institutions such as DBS Bank and Standard Chartered.
Founded in 2013 as ANX, BC Technology Group has evolved into one of the world’s most experienced digital asset firms, serving major institutional clients globally. OSL continues to focus on long-term value creation through strategic investments in blockchain, Web3, and fintech ventures.
As Hong Kong rolls out supportive Web3 policies, OSL is strategically expanding its retail offerings while maintaining its stronghold in institutional-grade services.
Hashkey Exchange: Opening Doors to Retail Investors
Hashkey Exchange received its Type 1 and Type 7 licenses from the SFC in 2022 and was granted approval in August 2023 to extend services to retail investors. On August 28, it officially launched trading for Bitcoin (BTC) and Ethereum (ETH)—the first licensed platform to do so under the new regime.
Key features of Hashkey’s offering include:
- Support for HKD and USD deposits/withdrawals.
- Direct bank transfers from recognized institutional accounts.
- Segregated client funds protected by institutional-grade custody insurance.
- Compliance certifications including ISO 27001 (information security) and ISO 27701 (data privacy).
To drive user adoption, Hashkey launched an HSK token airdrop campaign, incentivizing early sign-ups and engagement. By bridging traditional finance with digital assets, Hashkey aims to build a trusted gateway for both retail and institutional investors entering the crypto space.
HKVAX: Building Bridges Between Traditional Finance and STO Innovation
On August 11, 2023, the SFC issued a principle approval to Hong Kong Virtual Asset Exchange (HKVAX), positioning it as the third likely licensed platform. Founded by local entrepreneurs, HKVAX aims to redefine digital asset trading standards in Asia by connecting global markets with Hong Kong’s robust financial ecosystem.
A key differentiator is its strategic partnership with Magic Circle, a leading provider of Security Token Offering (STO) solutions. Since 2021, the two have collaborated to promote STO issuance and trading across Hong Kong and Southeast Asia.
HKVAX plans to offer three core services:
- OTC brokerage with tight spreads and high liquidity for seamless fiat-to-crypto conversions.
- An institutional-grade trading platform designed for professional traders.
- Fully insured custodial services with clear separation between client and company assets.
This focus on regulated innovation makes HKVAX a strong contender in the evolving digital securities landscape.
HKbitEX: Led by Former HKEX Executives with STO Ambitions
Backed by Tai Chi Capital, HKbitEX was founded in June 2020 by former executives from the Hong Kong Exchanges and Clearing (HKEX). The team brings deep expertise in traditional finance, positioning the exchange as a credible bridge between legacy systems and emerging digital asset markets.
Like HKVAX, HKbitEX holds a TCSP license and has partnered with Magic Circle to advance STO adoption in Hong Kong. While currently serving only professional investors, its application for a full VASP license signals intent to expand into broader retail services once approved.
Its focus on compliance-first development reflects a long-term vision aligned with Hong Kong’s regulatory roadmap.
HK BGE: Corporate-Backed Entry with High-Profile Leadership
HK BGE, a subsidiary of listed company HKE Holdings (stock code: 01726), entered the virtual asset space with notable leadership. Its former CEO, Thor Chan, previously served as co-founder and CEO of the now-defunct exchange AAX.
While details remain limited—the website is currently invitation-only for professional investors—HK BGE benefits from strong corporate backing. HKE Holdings has a market capitalization of approximately HK$2.3 billion, with Chairman Lian Haomin widely speculated (though unconfirmed) to be the son of “offshore gambling tycoon” Lian Zhuozhao.
With only two directors currently listed—Ou Jinpei (Operations) and Ji Danna (Business Development)—the company appears to be operating under a lean structure as it navigates the licensing process.
Victory Securities: First Financial Group with Dual Virtual Asset Licenses
Victory Securities made history as the first financial institution to receive both Type 1 (trading) and Type 4 (advisory) licenses for virtual assets from the SFC. It began offering virtual asset trading services in March 2023 and later added Type 9 (asset management) capabilities.
However, access remains restricted:
- Only professional investors can participate.
- Applicants must demonstrate minimum liquid assets of HK$8 million over the past year via bank or brokerage statements.
On September 25, 2023, SFC CEO Julia Leung confirmed that Victory Securities was among new applicants under review—reinforcing its commitment to full compliance. Its multi-license status positions it uniquely to offer integrated wealth management solutions combining traditional and digital assets.
OKX: Preparing for Strategic Market Entry
Although not yet licensed, OKX is widely expected to enter Hong Kong’s regulated market in early 2025. The exchange confirmed that its VASP application is in final stages, with submission planned by October 2023 and potential approval between March and June 2025.
Despite challenging market conditions, OKX has maintained strong growth across Chinese-speaking regions through product innovation and ecosystem development. With Hong Kong’s supportive policies gaining momentum, OKX is poised to introduce retail-friendly financial products and forge institutional partnerships upon licensing.
👉 Stay ahead of the curve with insights into upcoming exchange launches in Asia.
HTX (Formerly Huobi): Ambitions Meet Regulatory Scrutiny
HTX (formerly Huobi) launched Huobi Hong Kong in May 2023, signaling its intent to capture market share under the new framework. Founder Justin Sun revealed that the platform had submitted its VASP application with an 18-month review window.
However, reports suggest HTX may be on the SFC’s unofficial blacklist due to past compliance concerns. While the exchange remains optimistic about obtaining a license by year-end, industry insiders question whether this move is more about generating hype than achieving genuine regulatory alignment.
Frequently Asked Questions (FAQ)
Q: What is a VASP license in Hong Kong?
A: A Virtual Asset Service Provider (VASP) license issued by the SFC allows exchanges to legally operate crypto trading services for professional and retail investors in Hong Kong under strict regulatory oversight.
Q: Which exchanges are currently licensed in Hong Kong?
A: As of late 2023, OSL Digital Securities and Hashkey Exchange are fully licensed. Others like HKVAX, HKbitEX, Victory Securities, and OKX are in active application or review stages.
Q: Can retail investors use licensed platforms?
A: Yes—but only on platforms like OSL and Hashkey that have received specific approval. Most others currently serve only professional investors meeting high net-worth thresholds.
Q: Why is Hong Kong becoming a crypto hub?
A: Thanks to clear regulations, financial infrastructure, legal stability, and proximity to mainland China, Hong Kong offers a trusted gateway for compliant crypto innovation in Asia.
Q: Are customer funds safe on licensed exchanges?
A: Licensed platforms must segregate client assets, maintain insurance coverage, undergo regular audits, and comply with cybersecurity standards—significantly enhancing investor protection.
Q: When will more exchanges get licensed?
A: The SFC reviews applications continuously. Several major players are expected to receive approvals throughout 2024–2025 as the regulatory pipeline progresses.
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