Hong Kong’s Crypto Sector Gains Momentum with Victory Fintech License
Hong Kong’s Securities and Futures Commission (SFC) has granted a crypto license to Victory Fintech (VDX), an affiliate of Victory Securities. This marks the first such approval since June 2023, signaling a potential shift in the regulatory landscape and renewed momentum for the crypto industry in the region.
A Stricter Regulatory Approach
Hong Kong introduced its current regulatory regime for crypto service providers in 2023. The SFC’s approach is considered one of the strictest among major financial jurisdictions. This has led to some companies, including OKX and Bybit, withdrawing their license applications in May 2024.
Growing List of Approved Platforms
With the addition of Victory Fintech, there are now 12 approved virtual asset trading platforms registered with the SFC. This list includes Bullish, the parent company of CoinDesk.
What In other words for the Future of Crypto in Hong Kong
The approval of Victory Fintech’s license suggests the SFC is prepared to move forward with licensing qualified crypto firms, despite maintaining a rigorous vetting process. This could attract further investment and innovation to the Hong Kong crypto market.
The Broader Context: Global Crypto Regulation
Hong Kong’s approach to crypto regulation stands in contrast to other jurisdictions. While some countries are embracing crypto with open arms, others are taking a more cautious or restrictive stance. This divergence in regulatory approaches is shaping the global crypto landscape.
LATAM Crypto Developments
Elsewhere, Latin America is seeing varied developments. Argentina faces setbacks for fintech companies, while Brazil is considering Bitcoin as a potential reserve asset.
Victory Fintech and Victory Securities
Victory Fintech is an affiliate of Victory Securities (8540), a publicly listed financial services firm. The license allows VDX to operate a digital asset trading platform, potentially offering a wider range of crypto services to investors.
Pro Tip:
Always research the regulatory status of a crypto exchange before depositing funds. Licensed platforms generally offer greater investor protection.
FAQ
What does this license allow Victory Fintech to do?
The license allows Victory Fintech to operate a digital asset trading platform in Hong Kong.
How many crypto platforms are currently licensed in Hong Kong?
There are currently 12 approved platforms registered with the SFC.
Is Hong Kong’s crypto regulation strict?
Yes, Hong Kong’s regulatory regime for crypto firms is considered one of the strictest globally.
What happened with OKX and Bybit’s license applications?
Both OKX and Bybit withdrew their applications for a license in May 2024.
Did you know?
The SFC’s registry of licensed crypto firms is publicly available, allowing investors to verify the status of platforms.
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