The global cryptocurrency landscape continues to evolve as regulatory frameworks take shape across key financial hubs. One of the most significant developments in recent months is Crypto.com’s submission of a Virtual Asset Service Provider (VASP) license application to Hong Kong’s Securities and Futures Commission (SFC). This move underscores the growing importance of compliance and legitimacy in the digital asset space, particularly in Asia’s financial gateway—Hong Kong.
With the February 29, 2025 deadline for VASP applications now passed, all eyes are on which major exchanges have stepped up—and which have stayed silent.
Hong Kong’s VASP Licensing Framework: A New Era of Regulation
In June 2024, Hong Kong officially launched its comprehensive VASP licensing regime, marking a pivotal shift toward regulated crypto operations within the region. The framework was designed to bring transparency, investor protection, and institutional credibility to virtual asset trading platforms operating in or targeting Hong Kong residents.
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Under this policy, any platform offering crypto trading services to Hong Kong users had until February 29, 2025, to submit a formal license application. Those failing to apply must cease operations by May 31, 2025. However, platforms that applied during the transition period (June 1, 2024 – February 29, 2025) can continue operating under "deemed licensed" status until their application is approved, rejected, or withdrawn.
This structured approach reflects Hong Kong’s ambition to become a compliant and trusted hub for digital finance—balancing innovation with risk mitigation.
Who Has Applied? Current Status of VASP Applicants
According to the latest public data from the SFC, the current status of VASP applicants breaks down as follows:
- 2 platforms fully licensed: HashKey Exchange and OSL Exchange
17 platforms under review, including high-profile names such as:
- OKX
- Bybit
- Crypto.com (registered as Foris DAX HK Limited)
- bitV
- YAX
- Bullish
- BGE
- HKbitEX (Hong Kong Digital Asset Exchange Group Limited)
- HKVAX (Hong Kong Virtual Asset Exchange Limited)
- VDX (Victory Digital Technology Limited)
- Panther Trade Limited
Crypto.com’s entry into the Hong Kong market via formal application signals strong confidence in the region's regulatory clarity and long-term growth potential. As one of the world’s leading consumer-facing crypto platforms, its participation adds weight to Hong Kong’s credibility as a regulated crypto destination.
Notable Absences: Which Major Exchanges Haven’t Applied?
Despite the clear timeline and regulatory incentives, several prominent global exchanges have not yet submitted applications—or have opted out entirely.
- Bitget: Publicly announced it would not pursue a Hong Kong VASP license.
- Binance, HTX (formerly Huobi), and Gate.io: Not listed among applicants as of the deadline.
The absence of these players raises questions about their regional strategy. Possible reasons include ongoing global compliance challenges, strategic refocusing on other jurisdictions, or internal assessments that Hong Kong’s regulatory burden outweighs immediate market benefits.
However, with over seven million tech-savvy residents and strong institutional interest in digital assets, sitting out the Hong Kong opportunity could mean missing a critical foothold in Asia.
What Does a VASP License Allow?
A Hong Kong VASP license permits licensed operators to legally provide the following services:
- Buying and selling virtual assets
- Operating a crypto trading platform
- Safeguarding client assets (custody)
- Providing advisory services related to digital tokens
Licensed platforms must adhere to strict anti-money laundering (AML), cybersecurity, and consumer protection standards. They are also required to undergo regular audits and maintain sufficient capital reserves.
These requirements ensure only well-resourced, compliant firms serve retail and institutional investors—raising trust in the ecosystem.
👉 See how compliant crypto platforms are reshaping investor confidence worldwide.
Why Compliance Matters: The Bigger Picture
Regulatory compliance is no longer optional—it's foundational. As governments worldwide tighten oversight, exchanges that proactively seek licenses gain several advantages:
- Market access: Legal operation in high-value financial centers
- User trust: Verified legitimacy attracts retail and institutional capital
- Partnership opportunities: Banks, fintechs, and traditional finance players prefer working with regulated entities
- Long-term sustainability: Avoiding abrupt shutdowns or enforcement actions
Hong Kong’s approach mirrors trends seen in the EU (MiCA regulation), Singapore (MAS licensing), and Japan (FSA oversight), where clear rules enable innovation while protecting the public.
FAQ: Understanding Hong Kong’s VASP Landscape
Q: What happens if an exchange didn’t apply for a VASP license by February 29, 2025?
A: Platforms that missed the deadline must cease all business activities in Hong Kong by May 31, 2025. Continuing operations after this date would be illegal.
Q: Can unlicensed exchanges still serve Hong Kong users?
A: No. From June 1, 2025 onward, only licensed or deemed-licensed platforms may offer services to Hong Kong residents.
Q: What does “deemed licensed” mean?
A: Platforms that submitted valid applications during the transition period can continue operating temporarily until the SFC makes a final decision on their license.
Q: Is the VASP license only for spot trading?
A: No. Licensed platforms may offer a range of services, including derivatives trading—provided they meet additional risk management requirements.
Q: How long does the VASP approval process take?
A: There is no fixed timeline. The SFC evaluates each applicant based on financial soundness, governance, AML systems, and technical infrastructure. Approval can take several months.
Q: Will decentralized exchanges (DEXs) be regulated under this framework?
A: Centralized entities facilitating access to DEXs for Hong Kong users may fall under VASP rules. Pure peer-to-peer protocols remain a gray area but could face future scrutiny.
Final Thoughts: The Race for Legitimacy Is On
Crypto.com’s move to enter Hong Kong through official channels sets a precedent. It shows that even globally dominant platforms recognize the value of regulation—not just for legal safety, but for brand equity and user growth.
As the dust settles post-deadline, the next phase will focus on approvals, market consolidation, and public education. Investors should prioritize using only SFC-recognized platforms to ensure asset security and recourse in disputes.
For industry watchers, the message is clear: the era of unregulated crypto trading in major financial hubs is ending. Forward-thinking platforms are adapting; others risk irrelevance.