Hong Kong’s Securities and Futures Commission Licenses Victory Fintech, First Crypto Firm Since Mid-2025

Hong Kong’s Securities and Futures Commission (SFC) has officially added Victory Fintech Company Limited to its roster of licensed cryptocurrency trading platforms, marking the first such approval since June 2025. This development brings the total number of licensed cryptocurrency and blockchain entities overseen by the Hong Kong regulator to twelve. The addition of Victory Fintech signifies a renewed pace in the SFC’s licensing process for virtual asset trading platforms, which had seen a pause in new approvals since mid-2025 when Hong Kong BGE received its license.

The SFC’s comprehensive list of licensed virtual asset trading platforms, accessible via its fintech contact point, now includes Victory Fintech as the latest entrant. This expansion is a notable event in Hong Kong’s regulatory landscape for digital assets, a jurisdiction that has historically maintained a stringent approach to crypto operations. Since June 2024, Hong Kong authorities have been actively pursuing unlicensed virtual asset trading platforms, classifying such operations as criminal offenses. This enforcement drive led to the closure of numerous exchanges that had been operating within the region, while others, including prominent names like OKX and Bybit, ultimately withdrew their licensing applications rather than comply with the evolving regulatory framework.

The recent licensing of Victory Fintech occurs in the context of Hong Kong’s broader strategy to foster a regulated and secure environment for virtual assets. In January of this year, Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, indicated that regulators, including the SFC, were actively working on a draft ordinance. This proposed legislation is intended to govern providers offering crypto advisory services and was slated for submission sometime in 2026. While the SFC’s list now features a dozen licensed companies, it is important to note that Hong Kong’s Monetary Authority, as of Monday, had not listed any licensed stablecoin issuers on its registry.

In a significant move that underscores Hong Kong’s commitment to expanding the scope of regulated crypto activities, the SFC announced just days before Victory Fintech’s licensing that it would permit licensed brokers to engage in virtual asset margin financing. This new guidance, however, comes with specific collateral requirements, initially restricting eligible assets to Bitcoin (BTC) and Ether (ETH). Furthermore, the SFC has established a framework that will enable trading platforms to offer perpetual contracts, albeit exclusively to professional investors. This dual approach of both expanding licensing and defining the parameters for advanced trading products demonstrates Hong Kong’s intention to solidify its position as a responsible hub for digital asset innovation.

The SFC’s proactive stance on virtual assets is part of a global trend among financial regulators to balance the potential benefits of cryptocurrencies and blockchain technology with the imperative of investor protection and financial stability. Hong Kong’s approach, characterized by a clear regulatory pathway and stringent oversight, aims to attract legitimate businesses while deterring illicit activities. The licensing of Victory Fintech is a testament to the SFC’s ongoing efforts to bring more virtual asset service providers into a regulated ecosystem.

The inclusion of Victory Fintech on the SFC’s list of licensed virtual asset trading platforms is a significant indicator of the evolving regulatory environment in Hong Kong. It suggests that the SFC is actively evaluating and approving applications from companies that meet its stringent criteria. This process is designed to ensure that licensed platforms adhere to robust compliance standards, including anti-money laundering (AML) and counter-terrorist financing (CTF) regulations, as well as customer protection measures. The fact that this is the first license granted since June 2025 highlights the thoroughness and deliberative nature of the SFC’s review process.

The SFC’s decision to allow licensed brokers to offer virtual asset margin financing and perpetual contracts to professional investors is a strategic step towards developing a more sophisticated and comprehensive financial market for digital assets. Margin financing allows investors to borrow funds to trade, potentially amplifying returns but also increasing risk. Perpetual contracts, a type of derivative, are popular in cryptocurrency trading for their ability to offer leveraged exposure without an expiry date. By confining these activities to professional investors, the SFC is implementing a risk-mitigation strategy, recognizing that these products carry a higher degree of complexity and potential for loss. The initial restriction to Bitcoin and Ether as collateral further signals a cautious approach, prioritizing the most established and liquid digital assets.

The broader context of Hong Kong’s cryptocurrency regulation has been shaped by its commitment to international standards and best practices. The SFC has been working in tandem with other regulatory bodies and international organizations to ensure that its framework is aligned with global efforts to regulate the digital asset space. This includes addressing concerns related to market manipulation, insider trading, and the illicit use of virtual assets. The ongoing efforts to introduce legislation for crypto advisory services further demonstrate a holistic approach to regulating the entire spectrum of virtual asset-related activities.

The journey for crypto companies seeking to operate legally in Hong Kong has been marked by a significant shift from a more laissez-faire attitude to a highly regulated environment. The enforcement actions against unlicensed platforms in 2024 served as a clear signal of the government’s intent to impose order. This has led to a period of consolidation and adaptation for many players in the market. The successful licensing of Victory Fintech, therefore, represents not only an individual company’s achievement but also a positive development for the broader ecosystem, indicating that legitimate and compliant operations are achievable within Hong Kong’s regulatory framework.

The addition of Victory Fintech to the SFC’s list of licensed virtual asset trading platforms, and the recent pronouncements on margin financing and perpetual contracts, collectively paint a picture of a maturing regulatory landscape in Hong Kong. This strategic approach aims to foster innovation and attract investment while safeguarding the integrity of the financial system and protecting investors. The SFC’s continued engagement and willingness to adapt its regulations to the evolving nature of virtual assets position Hong Kong as a significant player in the global digital asset economy.