The year 2023 marked a pivotal turning point for Hong Kong's virtual asset market — the official launch of a comprehensive licensing regime for virtual asset trading platforms (VATPs). As Bitcoin and other digital assets continue to gain traction globally, regulated exchanges have become central to market integrity and investor protection. With jurisdictions like the United States, Canada, and South Korea already enforcing strict compliance frameworks, Hong Kong has made its ambitions clear: to become a global Web3 and fintech hub by building a robust, transparent, and secure digital asset ecosystem.
On June 1, 2023, the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance came into full effect, establishing a mandatory licensing system for centralized virtual asset trading platforms under the Securities and Futures Commission (SFC). This milestone ushered in a new era of compliance-driven innovation.
Currently, two platforms — OSL and Hashkey — hold full SFC licenses and are actively serving retail investors. Meanwhile, 12 additional firms have formally applied for licensing, representing a diverse mix of Web3 pioneers, traditional financial institutions, and tech-driven entrepreneurs. This article provides an in-depth overview of their progress, strategies, and potential impact on Hong Kong’s evolving digital asset landscape.
OSL and Hashkey: Leading the Compliance Charge
OSL – Strategic Reinvention for Global Ambitions
OSL, operated by BC Technology Group (now rebranded), has long been a cornerstone of Hong Kong’s virtual asset scene. After years of operational challenges, 2023 brought a transformative shift.
In August 2023, OSL and Hashkey jointly announced they had received SFC approval to offer retail trading services — a major breakthrough that opened the floodgates for mass-market participation.
OSL capitalized on favorable market conditions, including the growing anticipation of U.S. spot Bitcoin ETF approvals, to forge high-profile partnerships with institutions such as Harvest Global Investments, Interactive Brokers, Winvic Securities, and Mulan Asset Management. These collaborations strengthened its credibility and expanded its institutional footprint.
A defining moment came in November 2023, when BGX Group — linked to Bitget — invested approximately HK$710 million into OSL, acquiring a 29.97% stake and becoming its largest shareholder. The transaction closed in January 2024, leading to a board reshuffle and the appointment of Pan Zhiyong, BGX’s CEO, as OSL’s new Chairman and CEO.
Under Pan’s leadership, OSL has outlined four strategic pillars for 2024:
- Global expansion
- Service innovation
- Digital finance integration
- Elevated compliance standards
With institutional capital increasingly flowing into crypto markets post-ETF approvals, OSL is positioning itself as a bridge between traditional finance and digital assets.
Hashkey – Building Trust Through Innovation
Hashkey has maintained a strong lead in user adoption and ecosystem development. Within just four months of launching its exchange, it attracted over 150,000 users, achieving an average daily trading volume of $630 million.
The platform supports trading in 18 major cryptocurrencies and has onboarded more than 10 securities firms and funds. Notably, six Hong Kong-listed companies — including Yoko Media, Bluehole Interactive, and New Power Technology — have opened accounts on Hashkey.
Security is a key differentiator: in November 2023, insurance provider OneDegree began offering wallet insurance covering both hot and cold storage for Hashkey users.
Hashkey is also pioneering tokenized real-world assets (RWA), partnering with China Asset Management and Hamsa Capital to explore innovative financial products. In January 2024, Hashkey Group raised nearly $100 million** in Series A funding at a valuation exceeding **$1.2 billion, backed by institutional investors and strategic Web3 players.
Led by Dr. Xiao Feng, a vocal advocate for regulatory clarity, Hashkey exemplifies how compliance can coexist with innovation. However, as global giants like OKX and Binance move toward full compliance, Hashkey will face intensified competition.
The Next Wave: 12 Platforms Vying for Market Share
While OSL and Hashkey lead the pack, a competitive second tier is rapidly emerging.
HKVAX – Bridging Mainland China and Global Markets
HKVAX received in-principle approval from the SFC on August 11, 2023, making it poised to become Hong Kong’s third licensed VATP. Its CEO, Wu Weiliang, brings deep experience from traditional finance, having worked with Morgan Stanley, JPMorgan, and CITIC Futures.
Wu envisions Hong Kong as a critical bridge between China’s domestic blockchain infrastructure — such as Ant Chain and Wuhan Chain — and global ecosystems like Ethereum. By converting Chinese digital assets into globally tradable tokens via Hong Kong, HKVAX aims to unlock cross-border value flows.
This strategic positioning could give HKVAX a unique edge if executed effectively.
VDX – B2B-Focused with Institutional Pedigree
VDX (Victory Fintech Limited) is backed by Victory Securities, the first local Hong Kong broker to secure licenses for virtual asset activities (Types 1, 4, and 9) and the first approved to serve retail clients.
With monthly revenues reaching $10 million and profitable operations already achieved, VDX focuses on providing Web3 technology solutions and liquidity services to financial institutions. Its team includes alumni from Deutsche Bank, Accenture, Tencent, and Futu Holdings.
Unlike consumer-facing platforms, VDX operates more like a fintech enabler — building infrastructure for the next generation of digital finance.
BGE – Backed by a Young Financial Entrepreneur
BGE, a subsidiary of listed firm HKE Holdings, is led by Lian Haomin, founder of Monmonkey Group. After early setbacks in traditional investments, Lian pivoted toward blockchain, investing tens of millions over three years.
With over 120 employees dedicated to its exchange project, BGE aims to secure its SFC license in early 2024 and expand into Southeast Asia — positioning itself as a regional player with strong local roots.
HKbitEX – From STOs to RWA Innovation
Part of Tykhe Capital (also known as "Taiji Capital"), HKbitEX is led by Gao Han, a former Hong Kong Exchange executive involved in landmark projects like Stock Connect. The platform launched PRINCE, Hong Kong’s first real estate security token offering (STO) for professional investors.
In December 2023, HKbitEX partnered with the Shanghai Technology Exchange to explore tokenized financing solutions for tech startups — addressing challenges like valuation gaps and exit mechanisms.
This focus on real-world asset tokenization positions HKbitEX at the forefront of institutional-grade blockchain adoption.
Meex – Security-First Approach with Elite Talent
Meex Digital Securities Limited filed its license application in October 2023. It emphasizes asset security through independent custody via its licensed TCSP entity, Meex Custody Services Limited.
The team includes seasoned professionals: CEO Jason Feng (ex-COFCO), CTO Lu Zhichao (ex-Bybit), and operations lead Vince Lam (former HKbitEX operator). Strategic partners include ZA International and Huawei Cloud Hong Kong.
As one of the fastest-moving applicants post-regulation launch, Meex could emerge as a trusted platform for institutional clients.
PantherTrade – Futu’s Bold Entry into Crypto
PantherTrade (Hong Kong) Limited is widely believed to be a wholly owned subsidiary of Futu Securities, marking another traditional broker entering the digital asset space.
Although details remain limited, PantherTrade appointed experienced executives from Huobi and JD Securities. Futu had previously signaled interest in crypto services back in 2021 but was constrained by regulatory uncertainty.
Now with clear rules in place, PantherTrade may soon launch a fully integrated trading experience combining stocks and digital assets.
👉 See how traditional financial platforms are integrating crypto to meet evolving investor demands.
OKX – Global Giant on the Brink of Entry
While not yet licensed in Hong Kong, OKX’s global compliance momentum signals its inevitable arrival. In January 2024, its Middle East entity secured a VASP license from Dubai’s VARA authority — demonstrating its commitment to regulated markets.
OKX’s entry into Hong Kong would send shockwaves through the industry. The market eagerly awaits whether it will simply comply or innovate — potentially launching new products that redefine what a compliant exchange can offer.
VAEX – KuCoin’s Regulatory Playbook
VAEX applied in November 2023 and is seen as part of KuCoin’s broader strategy to embrace regulation. While KuCoin continues operating globally without a central license, VAEX represents its formal bid for legitimacy in Asia.
KuCoin Ventures has already invested in Hong Kong-based projects like stablecoin issuer CNHC. If VAEX gains approval, it could serve as a gateway for KuCoin’s ecosystem to access regulated capital.
Accumulus – A Mainland Tech Giant’s Web3 Bet
Backed by Yunzhanghu, one of China’s largest fintech firms serving over 82 million freelancers across 120 countries, Accumulus brings significant resources to Hong Kong’s market.
Its application reflects a growing trend: mainland enterprises leveraging Hong Kong’s open regulatory environment to enter Web3. Despite technological and cultural gaps between China’s closed blockchain ecosystem and global standards, Accumulus’ scale could enable rapid user acquisition if trust is established.
DFX Labs – Newcomer with High-Caliber Leadership
DFX Labs submitted its application on December 27, 2023 — the last of 2023. Led by COO Simon Au Yeung (ex-BGE, Blockchain Finance), DFX aims to support BTC and ETH trading upon launch.
Though details are sparse, its leadership pedigree suggests serious ambitions.
HKVAEX – Experienced Team Amid Binance Speculation
Founded in 2022, HKVAEX is led by CEO Stanley Fung, former head of Huobi Hong Kong. Despite speculation linking it to Binance — which denied any affiliation — HKVAEX has actively participated in industry events and supported market research initiatives like the Virtual Asset Index.
Its deep Web3 expertise may help it stand out in a crowded field.
BitHarbour – Mystery Surrounds CoinEx Ties
BitHarbour applied in January 2024 with minimal public information. However, its user agreement references investment activities on CoinEx, suggesting a possible operational or technical relationship.
Whether it acts as CoinEx’s compliance arm remains to be seen.
Frequently Asked Questions (FAQ)
Q: How many virtual asset exchanges are currently licensed in Hong Kong?
A: As of early 2025, only two platforms — OSL and Hashkey — hold full SFC licenses allowing retail trading.
Q: What are the key requirements for a virtual asset trading platform license in Hong Kong?
A: Platforms must meet strict criteria including AML/KYC protocols, custody safeguards, financial soundness, cybersecurity measures, and ongoing audits under SFC supervision.
Q: Can unlicensed platforms operate in Hong Kong?
A: No. Since June 1, 2023, all centralized exchanges serving Hong Kong clients must obtain an SFC license or face legal action.
Q: Why is Hong Kong becoming a hub for crypto exchanges?
A: Clear regulations, strong rule of law, access to global capital, and proximity to mainland China make Hong Kong an ideal jurisdiction for compliant digital asset growth.
Q: What role do real-world assets (RWA) play in Hong Kong’s crypto strategy?
A: RWA tokenization is a major focus area, enabling tangible assets like real estate or intellectual property to be traded digitally — bridging traditional finance with blockchain innovation.
Q: When will more platforms get licensed?
A: The SFC reviews applications on a rolling basis. Given current progress, several applicants — including HKVAX — may receive final approval in 2025.
👉 Stay ahead of licensing updates and discover which platforms are closest to going live.
Final Thoughts
Hong Kong’s virtual asset exchange landscape is shaped by three distinct forces:
- Established Web3 leaders like Hashkey
- Traditional financial institutions leveraging existing trust
- Innovative startups pushing boundaries
While no single winner has emerged yet, the intense competition underscores one truth: Hong Kong is central to the future of regulated digital asset markets.
As institutional capital flows in and retail adoption grows, the city is well-positioned to become Asia’s premier Web3 finance hub — powered by innovation, compliance, and global connectivity.