Hong Kong's licensed virtual asset trading platform (VATP) ecosystem has expanded with four new members joining OSL Exchange, HashKey Exchange, and HKVAX. The Securities and Futures Commission (SFC) is accelerating its approval process for virtual asset licenses while establishing a clear regulatory roadmap to strengthen Hong Kong's position in the Web3 sector.
Four New Platforms Licensed by Hong Kong SFC
On December 18, the SFC announced it had granted licenses to four virtual asset trading platforms under its fast-track approval process:
- Accumulus (operated by Cloud Account Greater Bay Area Technology (HK))
- DFX Labs
- HKbitEX (operated by Hong Kong Digital Asset Exchange Group)
- EX.IO (operated by Thousand Whales Technology)
This brings the total number of licensed VATPs in Hong Kong to seven.
Platform Breakdowns
1. HKbitEX: Founded by Ex-HKEX Executives with Multi-Million Dollar Funding
- Background: Launched in 2019 by Hong Kong Digital Asset Exchange Group, a subsidiary of Taiji Capital Group, which specializes in tokenized asset services.
- Key Figures: Founder Gao Han previously worked at HKEX, focusing on mainland market expansion (e.g., Stock Connect).
- Funding: Raised $10M in Series A2 (2020) and $90M in Pre-B (2021) from investors like Axion Global, Hanwha Asset Management, and Lenovo Capital.
2. Accumulus: Backed by China’s Top 500 Company
- Parent Company: Cloud Account Greater Bay Area Technology (HK), a branch of Cloud Account Group (China’s largest online HR service provider).
- Achievements: Ranked among "2024 China’s Top 500 Enterprises" with ¥108.4B revenue.
- Web3 Focus: Officially applied for a VATP license in late 2023.
3. DFX Labs: Blockchain Veterans at the Helm
- Team: COO Simon Au Yeung (ex-CEO of Blockchain Finance) and CTO David H. (ex-Morgan Stanley, HashKey Group).
- Specialization: Combines fintech and blockchain expertise for compliant trading solutions.
4. EX.IO: Major Investment from Sina-Backed Brokerage
- Investors:华盛资本集团 (Sina’s online brokerage), Longling Capital, and WeShareFinTech (HKG:2003).
- Rebrand: Originally launched as xWhale after a strategic partnership with BusyWhale in 2023.
Hong Kong’s 6-Step Licensing Roadmap
To streamline approvals, the SFC outlined a structured process:
- On-Site Inspection: Identify corrective actions for compliance gaps.
- Conditional Licensing: Platforms implement fixes under SFC supervision.
- Independent Audits: Third-party penetration testing and vulnerability assessments.
- Restricted Operation: Platforms operate with limited scope post-audit.
- Policy Review: External experts evaluate revised procedures; SFC oversees.
- Full Licensing: Restrictions lifted after final compliance verification.
👉 Learn more about Hong Kong’s Web3 regulatory framework
Future Plans
- 2025 Advisory Group: The SFC will form a consultative panel with representatives from licensed platforms to align regulations with industry needs.
- Guidance for New Applicants: Additional licensing frameworks for second-platform operators will be released in early 2025.
FAQs
1. How long does the VATP licensing process take?
The SFC’s fast-track program aims to complete approvals within months, contingent on addressing compliance requirements.
2. Can foreign platforms apply for Hong Kong licenses?
Yes, but they must establish a local entity and meet SFC’s capital and operational standards.
3. What’s the penalty for unlicensed trading?
Unlicensed operations face fines up to HK$5M and imprisonment under Hong Kong law.
👉 Explore licensed trading platforms in Hong Kong
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