Hong Kong continues its push to establish itself as a leading digital asset hub, with the Securities and Futures Commission granting Bullish, a Peter Thiel-backed crypto exchange, regulatory approval to operate in the city. This brings the total number of licensed virtual asset trading platforms in Hong Kong to ten.
The Securities and Futures Commission reaffirmed its commitment to a “vibrant and promising” digital asset future, outlining a roadmap that emphasizes regulatory clarity, institutional participation, and enhanced investor protections. These developments were further highlighted during Consensus Hong Kong 2025, where Securities and Futures Commission CEO Julia Leung spoke about the city’s ongoing regulatory efforts and the introduction of crypto derivatives and margin lending for professional investors.
Retail access and market development: a calculated expansion strategy
In a statement sent to crypto.news, Jodee Lee, head of legal at Flipster, provided insights into Hong Kong’s phased approach to retail crypto access, describing it as a “calculated strategy” to balance market growth with risk management.
“Hong Kong’s phased approach to virtual asset regulation reflects a calculated strategy to balance market growth with risk management. By initially permitting access to professional investors only, the SFC ensured that trading platforms could refine compliance protocols, stress-test their operational resilience, and implement investor protections without exposure to retail participants. […]”
Lee emphasized that this approach also gave the SFC time to iterate on compliance measures and enhance regulatory oversight.
Hong Kong’s competitive edge in the global crypto race
Another key theme in Hong Kong’s regulatory expansion is how it compares to other global crypto hubs, particularly in the Asia-Pacific region. Jodee Lee pointed out to crypto.news that while Hong Kong and Singapore have taken different regulatory approaches, their shared focus on regulatory clarity is collectively strengthening Asia’s presence in the global digital asset landscape. Lee said:
“The development of virtual asset frameworks across the Asia Pacific represents a significant milestone in global financial innovation. While jurisdictions like Hong Kong and Singapore have each developed distinct approaches, their shared commitment to regulatory clarity is collectively elevating the region’s position […]”
Rather than fostering a zero-sum competition with Singapore, Lee highlighted how APAC’s evolving regulatory landscape contributes to a broader ecosystem that attracts global crypto businesses.
Bridging TradFi and digital assets: the role of custody and OTC trading
Institutional participation is a critical part of Hong Kong’s long-term digital asset vision. One of the key pillars of this transition is regulated custody solutions and over-the-counter trading, both of which are gaining momentum in the region.
Lee also emphasized the importance of licensed custody solutions, describing them as a crucial bridge between traditional finance and the digital asset industry.
“Custody and OTC trading are critical pillars of institutional crypto adoption, and the SFC’s focus on these areas underscores its long-term vision for Hong Kong as a global crypto-financial center. Licensed custody solutions bring crypto closer to traditional financial standards […]”
