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Another Hong Kong Retail Crypto Trading License Victory

Victory Securities' stock price is up over 35% after announcing the crypto platform has been awarded a retail trading license in Hong Kong.

Photo by Ihor Saveliev / Unsplash

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Hong Kong has handed out yet another license to operate crypto exchanges for retail investors in the form of Victory Securities.

In an announcement on Friday, the HKSE-listed company said it is the first licensed corporation to offer a crypto trading and advisory service to retail investors. During trading on Monday, its stock price surged over 35%.

The news follows Friday's unofficial announcement that brokerage giant Interactive Brokers has received a crypto trading license in Hong Kong, confirmed on LinkedIn by David Friedland, the firm's managing director for Asia Pacific.

HashKey Exchange and OSL Digital Securities are the other crypto-native firms which have been awarded a license in Hong Kong from the Securities and Futures Commission (SFC).

Both HashKey and OSL were previously licensed under the SFC's voluntary regime and hence had a simplified process to acquire the new licences. These are the first approvals announced since the mandatory licensing regime was put into practice, symbolizing a significant stride in the legitimization of the crypto industry in Hong Kong.

Hong Kong Steps Forward in Crypto Regulation: Awards First Retail Crypto Licences
This major development comes as part of Hong Kong’s mandatory virtual asset licensing regime which came into effect on June 1.

Earlier this month, HashKey Exchange launched a retail trading app after initiating retail trading services on its website in August.

HashKey also plans to introduce its ERC-20 utility token, HSK, to incentivize ecosystem growth, with a potential listing by mid-next year. Additionally, HashKey is exploring real-world asset tokenization, aligning with rising discussions around this new asset class.

Leading cryptocurrency exchange OKX has also applied for a virtual asset trading license from the SFC. OKX's name is on the recently updated list of virtual asset trading platform license applicants, and is working closely with regulators to meet the necessary regulatory requirements, the report said.

Crypto Exchange OKX Pursues Virtual Asset Trading License in Hong Kong
OKX is seeking a virtual asset trading license in Hong Kong to strengthen its compliance measures and expand its presence in the Asia-Pacific region

Obtaining a virtual asset trading license would enable OKX to offer a broader range of digital asset services to its users in Hong Kong, increasing its credibility in the local market.

Hong Kong’s Plan to Greenlight Spot Crypto ETFs: A Smart Move or a Foolish Gamble?
The Hong Kong Securities and Futures Commission (SFC) is considering allowing spot crypto ETFs, a move that could position Hong Kong as a digital asset hub in Asia. The city’s move could set a precedent for other Asian countries, driving responsible growth in the crypto space.