Hong Kong Securities and Futures Commission grants PantherTrade and YAX operational licenses

The Hong Kong Securities and Futures Commission (SFC) announced on January 27 that it had granted its first crypto operational licenses of 2025 to the crypto exchanges PantherTrade and YAX. The commission’s public records further indicated that the two exchanges were registered under the Hong Kong SFC’s Ordinance and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). 

YAX (Hong Kong) Limited is a subsidiary of Tiger Brokers (HK) Global Limited. The latter announced the recent licensing YAX received, mentioning that the exchange would be able to deal with securities and automated trading services after the platform’s official launch. Tiger Brokers also mentioned the exchange’s dedication to providing regulated services for Hong Kong crypto holders and its commitment to innovation. 

Tiger Broker’s co-founder and CEO, Wu Tianhua, pointed out the rapid development of the crypto sector, further increasing crypto market potential. Tianhua added that creating YAX as a subsidiary showed the company’s dedication to digital asset development and its contribution to making Hong Kong a digital assets hub. 

YAX (Hong Kong) CEO Kevin Liu Kai commented on the licensing, saying it showed the SFC’s recognition of the exchange’s strength. Kai added that the license would allow the exchange to provide users with secure and transparent trading services while improving YAX’s trading speed and custodial security.  

PantherTrade also announced on its platform that it received a Deemed VASP license under AMLO. The exchange did not provide any further details about the licensing. 

Hong Kong plans to speed up VASP licensing

Hong Kong says they will issue more crypto exchange licenses by the end of 2024.🇭🇰 pic.twitter.com/6P2h3XFxmz

— Christiaan (@ChristiaanDefi) October 28, 2024

After multiple companies applied for operational licenses, the SFC began licensing virtual asset service platforms (VASPs) companies in 2024. The commission created the licensing regime in 2023 to create a safe environment for retail investors to engage with digital assets. The Hong Kong government also aimed to attract multinational businesses to engage with the country’s markets. 

According to the list provided by the SFC, the commission’s recently issued licenses have placed the total number of licenses issued to VASPs at 9. The Hong Kong virtual assets watchdog had previously approved 4 licenses in December and 2 more in October 2024. The SFC is also planning to speed up the licensing of more crypto service providers by the end of 2026. The commission still lagged behind its initial plan to issue 11 licenses by the end of last year. 

However, the SFC chairperson, Julia Leung, confirmed that the commission would maintain strict licensing standards to ensure consumer safety. Leung explained that the commission would discuss its expectations with crypto service providers’ management to hasten the licensing process. 

The government also recognized the rapid growth experienced in the Hong Kong crypto market, further highlighting the steps multiple jurisdictions were taking to regulate virtual assets comprehensively. In a February 2024 report, the SFC mentioned that the government would approach digital assets through ‘risk-based, prudent’ regulations. 

The Hong Kong Bills Committee also met on January 21 to discuss stablecoin regulations in the country. The discussion indicated the country’s commitment to creating a comprehensive regulatory framework for all digital assets. The regulators mentioned that stablecoin issuers were now required to register with the Hong Kong Monetary Authority (HKMA). 

The committee explained that the HKMA licensing would make sure the stablecoin issuers also followed KYC, AML, and CTF standards placed by the government. The discussions further insisted on the need for the issuers to sustain enough stablecoin reserves to maintain consumer safety. 

Singapore stands as Hong Kong’s competitor in digital asset markets

A recent Bloomberg report highlighted that Singapore is rivalling Hong Kong as the main crypto hub in Asia. The report mentioned that Singapore surpassed Hong Kong in terms of regulatory efficiency and appeal in 2024. Singapore issued 13 licenses last year, double the amount issued in 2023. Hong Kong, on the other hand, has had less than 10 issued since 2020. 

The report also revealed that Hong Kong’s strict evaluation of VASPs before licensing made the city’s progress in digital assets slower than Singapore’s. TRM Labs’ senior policy advisor, Angela Ang, commented that Hong Kong’s policies were restrictive, especially those related to token listing, delisting, and customer asset custody. 

The co-founder of One Satoshi, Roger Li, also commented that the city’s high standards were hard to maintain while expecting profits. Per the report, several exchanges withdrew their licensing applications, including OKX and Bybit.

Singapore still has OKX, Anchorage, BitGo, and other major exchanges operating in the country. The report further pointed out that the assets allowed for trade in Hong Kong (BTC and ETH)  were fewer compared to Singapore.

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