Victory Fintech’s digital asset platform VDX won regulatory approval from the Hong Kong Securities and Futures Commission (SFC) on Feb. 13, ending an eight-month pause in new crypto licenses. The move marks the first addition to the SFC’s list of licensed virtual asset trading platforms since June 2025. The approval lets VDX operate a regulated virtual asset trading platform in Hong Kong under the city’s strict licensing regime for digital asset firms. Officials first launched that framework in 2023 to bring virtual asset services into a fully supervised financial system. With VDX added, the total number of SFC-licensed virtual asset trading platforms now stands at 12. The list includes well-known operators such as Bullish, HashKey Exchange and OSL Digital Securities. Detailed Authorization and Regulatory Context According to public filings and the SFC registry, the license granted to VDX covers Type 1 regulated activity, which involves dealing in securities, and Type 7, which covers providing automated trading services. At the same time, VDX’s affiliate VDX Custody Limited received authorization under Hong Kong’s Anti-Money Laundering and Counter-Terrorist Financing Ordinance to offer custodial services for digital assets. The SFC regime requires strong compliance controls, sufficient capital, clear custody safeguards and robust governance before it issues a license. Since the licensing framework began, regulators have maintained a methodical pace in approving new entrants. As a result, several large global crypto firms have either withdrawn applications or paused efforts, citing the high compliance bar. Industry observers say the new approval signals that Hong Kong’s regulatory path remains open but demanding. While the total number of licensed platforms remains modest compared with some regional markets, regulators appear committed to a controlled growth model anchored in investor protection and operational integrity. Impact on Hong Kong’s Crypto Market For Victory Fintech, the license opens the door to broader participation in Hong Kong’s digital asset ecosystem, allowing the firm to expand trading and service offerings to professional and institutional clients. It also reinforces the regulator’s message that only firms capable of meeting detailed oversight requirements will win approval. Investors and market participants now watch to see whether more applicants can clear the regulatory hurdles and enter the licensed cohort under the SFC’s closely supervised framework.
