Hong Kong’s Securities and Futures Commission (SFC) has issued its first crypto trading license of 2025, although it excluded Ripple’s XRP from the list of approved cryptocurrencies.
The regulator granted licenses to PantherTrade and YAX, two Hong Kong-based cryptocurrency exchanges, on January 27.
Despite XRP’s widespread adoption globally, the SFC continues to allow trading for only four categories: Bitcoin (BTC), Ether (ETH), Avalanche (AVAX), and Chainlink (LINK). The absence raises the question of the regulatory position on XRP, as Hong Kong positions itself as a major crypto hub.
As per the Hong Kong government’s public records, both exchanges are registered under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). Since 2020, 10 crypto exchanges have officially restarted under Hong Kong’s AMLO rules and are allowed to run virtual asset trading platforms.
The SFC has planned to approve 11 crypto trading platforms by the end of 2024. However, it faced delays due to strict compliance checkers, including Anti-Money Laundering (AML) laws, Know Your Customer (KYC) processes and cybersecurity measures.
In December 2024, Hong Kong granted licenses to four virtual asset trading platforms: HKbitEX, Accumulus, DFX Labs, and EX.IO. Still, regulators have been working closely with exchange executives to ensure they meet financial standards.
The exclusion of XRP is not clear, and SFC has not given any reason. However, Ripple’s legal issues in different countries may be a factor.
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