Hong Kong's Securities and Futures Commission (SFC) announced on September 25th that it would disclose a list of companies applying to provide cryptocurrency trading services to retail investors. This marks a significant policy shift, as regulators previously withheld this information. The decision comes amid heightened public scrutiny following the JPEX collapse.
SFC CEO Julia Leung stated during a press conference: "We'll release these applicant names in response to public demand." She emphasized that application status doesn't imply full compliance with all SFC requirements.
Current Regulatory Landscape
Since June 1st when new virtual asset regulations took effect:
- Only 2 firms (OSL Digital Securities and Hash Blockchain) hold full retail service licenses
4 companies have submitted applications:
- HKVAX
- Victory Fintech
- HKbitEX
- HKBGE
Applicant Profiles
1. HKVAX
Hong Kong Virtual Asset Exchange has secured SFC's in-principle approval—ahead of competitors. Its proposed services include:
- OTC brokerage
- Institutional-grade trading platform
- Custody solutions
COO Raymond Fok noted their 3-year application process, with an estimated 6-month wait for final licensing.
2. Victory Fintech
A subsidiary of Victory Securities (led by Hong Kong Securities Association chairwoman Juan Gao), it claims to operate the first compliant virtual asset trading app in Hong Kong's financial market.
3. HKbitEX
Founded in 2019 by ex-HKEX executives including CEO Han Gao, this platform completed $10M Series A2 funding in 2020. It focuses on regulated spot trading and OTC services for professional investors.
4. HKBGE
Established in April 2021 under HKE Holdings (market cap: ~HK$2.3B), this firm:
- Owns licensed TCSP provider HKBGE TSP Limited
- Offers virtual asset custody services
- Chaired by billionaire Ho Man Lin
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Controversial Connections
Speculation links HKBGE's chair to the family of "High Seas Gambling King" Lian Zhuozhao—though unconfirmed. This highlights the complex backgrounds common in crypto's high-risk, high-reward ecosystem.
Key Takeaways
- Transparency matters: SFC's disclosure policy improves investor awareness
- Due diligence required: Verify platforms beyond application status
- Regulatory evolution: Hong Kong's framework continues adapting post-JPEX
FAQ
Q: Can applicants legally operate now?
A: No—only principle-approved firms may prepare services pending full licensing.
Q: How does HKVAX differ from licensed exchanges?
A: It lacks final approval but may offer services sooner than new applicants.
Q: Why is HKBGE controversial?
A: Unverified familial ties to gambling interests raise ethical questions.
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This analysis synthesizes multiple sources while removing promotional content and sensitive allegations per editorial guidelines.