First crypto license in Hong Kong since June
The Hong Kong financial market regulator, the Securities and Futures Commission (SFC), has issued the first crypto company license since June 2022. The lucky recipient of the coveted permit is Victory Fintech, a firm specializing in digital assets.
This may signal a gradual recovery of the crypto industry in the region after a prolonged period of tightening regulations. In 2022, the SFC suspended the issuance of new licenses, focusing on supervising the existing players.
Hong Kong has long positioned itself as a crypto-friendly region. However, after the bankruptcy of several major crypto exchanges in 2022, the authorities have taken a course towards strengthening control over the industry. The introduction of licensing requires companies to comply with strict requirements for client asset security, reporting, and risk management.
The issuance of the license to Victory Fintech may indicate that the regulator has begun to gradually resume approving new players in the digital asset market. This is a positive signal for Hong Kong's crypto industry, which hopes to regain the status of one of the leading fintech hubs in the world.