Victory Fintech, a subsidiary of the publicly traded financial services company Victory Securities, has been granted a license to operate a digital asset trading platform by Hong Kong’s Securities and Futures Commission (SFC). This approval marks the first addition to the SFC’s registry of licensed crypto firms since June 2022.
The SFC’s decision reflects Hong Kong’s ongoing efforts to regulate the cryptocurrency sector, which has been characterized by stringent requirements. The current regulatory framework was established in 2023, aiming to create a secure environment for digital asset transactions. Since the introduction of this framework, only 12 platforms have received approval, with Hashkey Exchange and OSL Digital Securities being the initial beneficiaries.
Victory Fintech’s licensing comes at a time when the regulatory landscape for cryptocurrency in Hong Kong is becoming increasingly rigorous. Notably, major exchanges such as OKX and Bybit withdrew their licensing applications in May 2024, citing the challenging compliance requirements. The SFC’s registry now includes well-known entities like Bullish, which is listed on the New York Stock Exchange and is the parent company of CoinDesk.
The SFC’s approach has positioned Hong Kong as one of the strictest jurisdictions for crypto regulation globally. This has implications for both local and international firms seeking to operate within the region. As the market evolves, the SFC’s regulatory actions will likely continue to influence the operational landscape for digital asset firms.
In related news, discussions around the environmental impact of cryptocurrency mining are ongoing. The investment firm Paradigm has recently responded to U.S. lawmakers’ concerns regarding energy consumption in the sector. Paradigm argues that the industry’s reliance on off-peak and renewable energy sources is often overlooked in policy discussions.
Victory Fintech has received a crypto license from Hong Kong's SFC, highlighting the region's stringent regulatory environment. This approval adds to the growing list of licensed platforms amid increasing scrutiny of the cryptocurrency sector.