The Hong Kong Securities and Futures Commission (SFC) has taken a significant step in shaping the future of cryptocurrency regulation by granting initial approval to 11 virtual asset trading platforms (VATPs). These exchanges have now been “deemed to be licensed,” allowing them to continue operating while they await final regulatory clearance. This move marks a pivotal moment in Hong Kong’s journey to becoming a globally recognized hub for digital asset innovation.
A Strategic Step Toward Full Licensing
Under new regulations implemented in 2023, crypto exchanges operating in Hong Kong must obtain a full VATP license by June 1, 2025, or cease operations. The "deemed licensed" status serves as a transitional mechanism—allowing platforms that submitted complete applications before the deadline to keep serving clients during the review process.
This structured approach reflects Hong Kong’s balanced stance: fostering fintech innovation while ensuring investor protection and market integrity. It also signals confidence in the city’s ability to regulate emerging financial technologies without stifling growth.
👉 Discover how top crypto platforms are navigating new regulations in Asia.
Leading Players in the Deemed-Licensed Group
Among the 11 deemed-licensed exchanges, Crypto.com stands out as the largest by trading volume and global reach. Originally founded in Hong Kong, the platform now operates primarily from Singapore but maintains strong regional ties. According to CoinGecko, it is the only top-20 exchange by 24-hour volume still undergoing the licensing process in Hong Kong.
Its inclusion underscores the city’s continued relevance in the global crypto ecosystem—even as major players expand internationally.
Another notable name is Bullish, a Gibraltar-incorporated exchange with operational bases in Singapore and New York. Bullish has been increasingly active in Hong Kong’s blockchain scene, participating regularly in industry events and supporting local crypto adoption initiatives.
In a strategic development, Bullish acquired CoinDesk, a leading media outlet in the digital asset space. The acquisition further strengthens its influence, especially after CoinDesk announced plans to bring its flagship Consensus conference to Hong Kong in 2025—an event expected to draw thousands of global participants.
Michael Lau, Global Head of Sales at Bullish, emphasized Hong Kong’s strategic importance:
“Hong Kong is an important jurisdiction as a top-tier financial hub. We see long-term value in building our presence here.”
Why Hong Kong Matters in the Global Crypto Landscape
Hong Kong’s push to regulate and legitimize crypto trading comes at a time when many jurisdictions remain cautious or restrictive. By introducing a clear licensing framework, the SFC aims to attract responsible innovators while deterring bad actors.
Currently, only two exchanges—HashKey and OSL—hold full licenses to serve retail investors in Hong Kong. HashKey became the first licensed platform under the previous voluntary regime in 2022. With the new rules, regulators are tightening compliance requirements around custody, cybersecurity, anti-money laundering (AML), and market surveillance.
For international exchanges, gaining access to Hong Kong means tapping into a sophisticated investor base and connecting with mainland China’s broader financial networks—albeit indirectly due to capital controls.
👉 See how compliant exchanges are preparing for Asia’s next wave of crypto growth.
Core Keywords Driving Market Interest
To align with search intent and improve visibility, key terms naturally integrated throughout this article include:
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These keywords reflect high-volume searches from investors, traders, and compliance professionals seeking clarity on regulatory developments in one of Asia’s most dynamic financial centers.
Frequently Asked Questions (FAQ)
Q: What does “deemed to be licensed” mean for crypto exchanges in Hong Kong?
A: It means the exchange has submitted a complete application for a full VATP license and meets preliminary requirements, allowing it to operate legally while awaiting final approval by June 1, 2025.
Q: How many crypto exchanges are currently fully licensed in Hong Kong?
A: As of now, only two exchanges—HashKey and OSL—are fully licensed to serve retail customers under the SFC’s framework.
Q: Can deemed-licensed platforms serve retail investors?
A: Not yet. Only fully licensed platforms can offer services to retail users. Deemed-licensed exchanges may continue serving institutional or professional clients during the transition.
Q: Why is Crypto.com significant in this context?
A: As one of the world’s largest exchanges by volume and a Hong Kong-born company, its participation highlights the city’s ongoing role in global crypto innovation despite its regulatory evolution.
Q: What happens if an exchange fails to get licensed by June 1, 2025?
A: Any platform not granted deemed status or full approval by that date must cease operations in Hong Kong.
Q: Is Hong Kong open to foreign crypto companies?
A: Yes, but under strict compliance standards. Foreign exchanges must meet all regulatory requirements, including local presence, risk management systems, and auditing protocols.
👉 Learn how compliant platforms are setting new standards in digital asset trading.
The Road Ahead: Compliance, Innovation, and Global Competition
As the June 2025 deadline approaches, scrutiny will intensify on whether these 11 deemed-licensed platforms can meet all final regulatory benchmarks. Success will depend not just on technical compliance but also on transparency, user protection, and resilience against market volatility.
Hong Kong’s strategy contrasts with more restrictive approaches seen elsewhere in Asia. While China maintains a blanket ban on cryptocurrency trading and mining, Hong Kong operates as a semi-autonomous gateway where regulated innovation is encouraged.
This divergence creates opportunities for compliant platforms to position themselves as trusted intermediaries between East and West. For global investors, a Hong Kong-regulated exchange offers a rare blend of accessibility, oversight, and proximity to Asian markets.
The upcoming Consensus conference in 2025 could serve as a showcase moment—drawing global attention to Hong Kong’s progress and reinforcing its ambition to become a premier destination for blockchain and Web3 innovation.
In conclusion, the deemed licensing of 11 crypto exchanges is more than a regulatory formality—it's a signal of intent. Hong Kong is building a future where digital assets are not banned or ignored, but integrated responsibly into the financial mainstream.