Hong Kong SFC Grants Operating Licenses to PantherTrade and Yax

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The Hong Kong Securities and Futures Commission (SFC) has taken a significant step forward in shaping the region’s digital asset landscape by granting virtual asset service provider (VASP) licenses to PantherTrade and Yax on January 27, 2025. This marks the first set of crypto exchange operating permits issued in the new year, reinforcing Hong Kong’s ongoing commitment to building a regulated, secure, and innovation-driven fintech ecosystem.

These latest approvals bring the total number of licensed VASPs under the SFC to nine, following previous rounds of licensing in late 2024. Both companies are now officially registered under the SFC’s regulatory framework and must comply with stringent anti-money laundering (AML) and counter-terrorist financing (CTF) obligations as outlined in the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO).

Yax Strengthens Hong Kong’s Digital Asset Infrastructure

Yax (Hong Kong) Limited operates as a subsidiary of Tiger Brokers (HK) Global Limited, a well-established player in the financial services sector. The newly acquired license enables Yax to legally offer securities trading and automated trading services, marking a strategic expansion into the regulated digital asset space.

In a statement, Tiger Brokers emphasized its dedication to providing compliant and innovative financial solutions for Hong Kong’s growing crypto investor base. The company views Yax not only as a technological advancement but also as a cornerstone in its broader mission to position Hong Kong as a leading global hub for digital assets.

👉 Discover how top-tier trading platforms are reshaping digital finance in Asia.

Wu Tianhua, Co-Founder and CEO of Tiger Brokers, highlighted the rapid evolution of the cryptocurrency industry and its expanding market potential. He noted that establishing Yax as a dedicated subsidiary reflects the firm’s long-term commitment to digital asset development and regulatory compliance.

Kevin Liu Kai, CEO of Yax (Hong Kong), stated that the SFC license is a strong endorsement of the platform’s operational integrity and security standards. With this authorization, Yax will deliver enhanced trading speed, robust custody solutions, and transparent market practices—key elements for building user trust in an increasingly complex digital economy.

PantherTrade Confirms VASP Status Under AMLO

PantherTrade has also officially confirmed its VASP licensing status under AMLO, though it has not released detailed information about its compliance framework or service offerings. The approval signifies that PantherTrade meets the SFC’s rigorous requirements for risk management, cybersecurity, customer asset protection, and corporate governance.

While specifics remain limited, the licensing decision underscores the SFC’s continued efforts to formalize oversight across all major virtual asset platforms operating within or targeting Hong Kong investors.

Hong Kong Accelerates VASP Licensing Amid Growing Demand

Since launching its formal VASP licensing regime in 2023, the SFC has steadily moved to regulate the virtual asset sector and protect retail investors. The goal is to create a safe environment where consumers can confidently engage with digital assets while encouraging responsible innovation.

Despite falling slightly behind its original target of issuing 11 licenses by the end of 2024, the SFC remains committed to expanding its regulatory reach. It plans to accelerate the approval process for additional crypto service providers ahead of a projected 2026 deadline.

Julia Leung, SFC Chairperson, reaffirmed that consumer protection remains paramount. While streamlining application reviews, the commission will maintain high standards and conduct direct engagements with senior management of applicant firms to ensure readiness and compliance.

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The Hong Kong government also recognizes the fast-paced growth of the local crypto market. In a February 2024 report, the SFC outlined its “risk-based, prudent” approach to regulating digital assets—a balanced strategy aimed at fostering innovation without compromising financial stability.

Advancing Stablecoin Regulation: A Key Priority

On January 21, 2025, Hong Kong’s Legislative Council discussed proposed regulations for stablecoins—an emerging priority given their role in payments, trading, and decentralized finance (DeFi). Under the proposed rules, stablecoin issuers must register with the Hong Kong Monetary Authority (HKMA) and adhere to strict Know Your Customer (KYC), AML, and CTF protocols.

Additionally, issuers will be required to maintain sufficient reserve backing to ensure price stability and safeguard user funds—a critical measure for preventing systemic risks in times of market stress.

This initiative signals Hong Kong’s intent to establish a comprehensive regulatory framework covering all forms of virtual assets, from cryptocurrencies to tokenized securities and algorithmic stablecoins.

Competitive Landscape: Hong Kong vs. Singapore

While Hong Kong advances its regulatory agenda, it faces growing competition from Singapore—a regional leader in digital asset innovation. According to a recent Bloomberg report, Singapore outpaced Hong Kong in 2024 in both regulatory efficiency and market appeal.

Singapore issued 13 VASP licenses in 2024—double the number granted in 2023—while Hong Kong has issued fewer than 10 since 2020. Analysts attribute this disparity to Hong Kong’s more rigorous evaluation process, which, while ensuring higher compliance standards, may deter some global players.

Angela Ang, Senior Policy Advisor at TRM Labs, observed that Hong Kong’s policies—particularly around token listing, marketing practices, and custody of client assets—are more restrictive compared to Singapore’s flexible framework.

Roger Li, Co-Founder of Satoshi, noted that while high standards are beneficial for investor protection, they can be challenging for exchanges aiming for profitability. Several major platforms, including OKX and BYBIT, have reportedly withdrawn their licensing applications due to regulatory hurdles.

Notably, Singapore hosts key players such as OKX, Anchorage, and BitGo, offering a broader range of tradable assets—including BTC and ETH—compared to Hong Kong’s currently narrower selection.

👉 Compare how different markets shape the future of crypto trading.

Frequently Asked Questions (FAQ)

Q: What does a VASP license allow PantherTrade and Yax to do?
A: A VASP license permits these platforms to legally operate as crypto exchanges in Hong Kong, offering trading services for virtual assets while complying with AML, KYC, and consumer protection regulations.

Q: How many VASP licenses has Hong Kong issued so far?
A: As of early 2025, the SFC has granted nine VASP licenses, including those issued to PantherTrade and Yax.

Q: Why did some exchanges like OKX withdraw their applications?
A: Some global exchanges found Hong Kong’s regulatory requirements—especially around capital adequacy, governance, and token listing—too stringent or costly to maintain profitably.

Q: Are stablecoins regulated in Hong Kong?
A: While full regulation is still being developed, stablecoin issuers will soon be required to register with the HKMA and maintain adequate reserves under new legislative proposals.

Q: How does Hong Kong’s crypto regulation compare to Singapore’s?
A: Hong Kong emphasizes investor protection through stricter rules, while Singapore adopts a more business-friendly approach with faster licensing and greater flexibility.

Q: Can retail investors trade crypto freely in Hong Kong now?
A: Yes—licensed platforms can serve retail customers, but only approved tokens (like BTC and ETH) are available for public trading under current guidelines.

Core Keywords:

Hong Kong continues to build a robust foundation for its digital asset economy. While challenges remain in balancing innovation with oversight, these latest licensing milestones signal steady progress toward becoming a premier financial gateway for Web3 innovation in Asia.