Hong Kong SFC Grants Crypto License to Victory Fintech’s VDX, Expands Regulated Digital Asset Market

Hong Kong’s Securities and Futures Commission (SFC) has approved a new crypto license for Victory Fintech (VDX), an affiliate of publicly listed financial services firm Victory Securities (8540). The approval allows VDX to operate a regulated digital asset trading platform in Hong Kong, marking the first addition to the SFC’s official crypto registry since June 17 last year.

The move highlights Hong Kong’s continued efforts to position itself as a global hub for regulated cryptocurrency trading and digital asset services. Under the city’s licensing framework introduced in 2023, crypto exchanges and virtual asset trading platforms must meet strict compliance standards covering custody, risk management, anti-money laundering (AML), and investor protection.

Victory Fintech now joins a select group of 12 SFC-approved crypto platforms. Earlier license recipients include HashKey Exchange and OSL Digital Securities, the first two companies to gain approval under Hong Kong’s current virtual asset regulatory regime. The registry also includes Bullish (BLSH), a New York Stock Exchange-listed crypto exchange and parent company of CoinDesk.

Hong Kong’s crypto licensing regime is widely regarded as one of the most stringent among major financial jurisdictions. The framework aims to enhance transparency, safeguard retail investors, and strengthen institutional participation in the digital asset market. However, the strict regulatory requirements have also led some major global exchanges to reconsider their expansion plans in the region. In May 2024, prominent crypto platforms OKX and Bybit withdrew their applications for SFC licenses.

With the addition of Victory Fintech’s VDX, Hong Kong continues to demonstrate its commitment to building a secure, compliant, and sustainable cryptocurrency ecosystem. The approval reinforces the city’s strategy to balance innovation in blockchain and digital assets with robust financial oversight, further shaping its role in the evolving global crypto industry.