China-Tied Brokers Set to Apply for Crypto Trading Licenses in Hong Kong
Two financial entities with close ties to China, Yax and PantherTrade, are planning to apply for a virtual asset service platform (VASP) license in Hong Kong. Yax, supported by employees at Tiger Brokers, and PantherTrade, connected to Futu, are seeking to offer crypto services to retail clients. The firms are currently undergoing third-party assessments before submitting their applications with the Securities and Futures Commission (SFC).
So far, only two companies have been granted crypto licenses in Hong Kong: OSL and Hashkey. However, there is still significant interest from other companies looking to apply for the same permit. These companies are waiting for more clarity before proceeding. The Hong Kong market has faced challenges recently, as OSL’s operator BC Technology Group Ltd. considers selling its crypto business at a valuation of HK$1 billion (~$127.8 million) due to a decrease in trading volume.
Hot Take: Crypto Trading Licenses in Hong Kong
The entry of China-tied brokers into the Hong Kong crypto market signals growing interest and potential growth in the region. Yax and PantherTrade’s plans to apply for virtual asset service platform licenses demonstrate confidence in the regulatory framework of Hong Kong. However, with only two companies currently holding crypto licenses in the city, competition will be fierce for new entrants.
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