TL;DR
- Hong Kong grants its first crypto license since June 2024 to Victory Fintech (VDX).
- The firm operates as a subsidiary of publicly listed Victory Securities (ticker 8540).
- Authorized platforms now total 12, including Bullish, Hashkey, and OSL.
The Hong Kong Securities and Futures Commission (SFC) granted a crypto license to Victory Fintech (VDX), marking the first approval of its kind since June last year. The regulator issued the permit last Friday, according to the official registry of authorized crypto firms.
Victory Fintech operates as an affiliate entity of Victory Securities, a publicly listed financial services firm trading under ticker 8540. The company received authorization to manage a digital asset trading platform in the special administrative region.
The total number of approved platforms now reaches 12 companies on the SFC’s registry. Among the authorized firms appears Bullish, listed on the New York Stock Exchange under symbol BLSH and parent company of CoinDesk. Hashkey Exchange and OSL Digital Securities received the first approvals when the regime took effect.
Hong Kong Maintains One of the World’s Strictest Frameworks
Hong Kong’s regulatory system earned a reputation as one of the most rigorous among major global financial jurisdictions. The SFC implemented the current regime in 2023, establishing strict requirements for companies seeking to offer crypto services in the territory.
The severity of the regulatory framework prompted several major industry players to withdraw their applications. OKX and Bybit, two globally prominent exchanges, abandoned their license applications in May 2024. Both platforms decided against continuing the authorization process given the requirements established by the Hong Kong regulator.
Victory Fintech’s approval breaks an eight-month silence in the granting of new licenses. The gap between June 2024 and February 2025 represents the longest period without additions to the registry since the current regime’s implementation.
The Hong Kong regulator maintains elevated standards in compliance matters, investor protection, and risk management. Aspiring companies face exhaustive evaluations of their operational structures, security systems, and anti-money laundering capabilities.
The SFC’s decision reflects the balance between openness to the crypto sector and financial system protection. Hong Kong seeks to position itself as a financial hub for digital assets without compromising regulatory oversight. However, the framework’s strictness generates tensions with the approval speed the industry demands.
Victory Fintech’s case demonstrates market access to Hong Kong remains viable for companies willing to meet regulatory requirements. Nonetheless, the slow pace of approvals raises questions about the territory’s appeal for new sector participants.
The regulator prioritizes thorough vetting processes over rapid expansion, maintaining high barriers to entry that distinguish Hong Kong from less stringent jurisdictions. Companies must demonstrate robust compliance infrastructure before receiving authorization to operate.
