Victory Fintech Receives Approval from Hong Kong SFC
On February 13, Victory Fintech’s digital asset platform, VDX, received approval from the Hong Kong Securities and Futures Commission (SFC), marking a significant milestone in the region’s crypto regulatory landscape after a prolonged eight-month freeze on new licenses. This approval is particularly notable as it represents the first addition to the SFC’s roster of authorized virtual asset trading platforms since June 2025, highlighting a cautious yet positive shift in the regulatory approach to digital assets in the city.
VDX’s Licensing and Regulatory Compliance
With this new license, VDX is authorized to operate its virtual asset trading platform in Hong Kong, adhering to the stringent licensing requirements that were established in 2023. This regulatory framework was implemented to integrate virtual asset services into a thoroughly supervised financial environment. Following VDX’s addition, the number of licensed platforms under the SFC now totals twelve, which includes reputable names such as Bullish, HashKey Exchange, and OSL Digital Securities.
The license obtained by VDX permits the firm to engage in Type 1 regulated activities, which involve dealing in securities, as well as Type 7 services that pertain to automated trading solutions. In tandem, VDX’s affiliate, VDX Custody Limited, has been authorized to deliver custodial services for digital assets, compliant with Hong Kong’s Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
Challenges in the Licensing Process
To qualify for a license, the SFC has instituted a rigorous set of requirements focusing on compliance mechanisms, adequate capital reserves, and stringent governance protocols. The process has proven challenging for many firms; as a result, some large international crypto companies have either retracted their applications or slowed their efforts, citing the high demands imposed by the regulators.
Implications for the Industry
Industry analysts interpret VDX’s recent approval as indicative of Hong Kong’s ongoing commitment to a controlled but open regulatory environment for digital assets. Despite the limited number of licensed platforms compared to other regions, the SFC remains dedicated to fostering a growth model that prioritizes investor protection and operational reliability.
For Victory Fintech, this regulatory green light not only broadens its operational capabilities within Hong Kong’s digital asset market but also underscores the SFC’s stance that licenses will only be awarded to firms demonstrating the ability to meet rigorous oversight expectations. Market watchers are keenly observing whether this approval will pave the way for additional firms aspiring to navigate the regulatory landscape and join the circle of licensed entities under the watchful eye of the SFC.
