VDX secures SFC crypto license in first nod since 2023

Hong Kong SFC crypto license granted to Victory Fintech (VDX)

Hong Kong’s Securities and Futures Commission (SFC) has granted a virtual asset trading platform (VATP) license to Victory Fintech (VDX), adding a new regulated operator to the city’s crypto market, as reported by FinanceFeeds. The approval places VDX within Hong Kong’s supervised perimeter for trading platforms that serve local users under prescribed investor-protection and market-conduct rules.

Alongside the VATP authorization, VDX obtained approvals aligned with Type 1 (dealing in securities) and Type 7 (providing automated trading services), while its affiliated custodian, VDX Custody Ltd., secured licensing under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), according to Odaily News. The combined structure signals end-to-end supervision across trading, automation, and safeguarding of client assets.

Why this approval matters for Hong Kong’s regulated crypto market

The authorization marks Hong Kong’s first new SFC-licensed crypto platform since June 17, 2023, taking the total number of approved platforms to 12, as reported by The Cryptonomist. The milestone suggests the licensing pipeline remains open to firms that can evidence robust controls, even as the entry bar stays high.

Market structure in Hong Kong remains distinct from Mainland China, and firms continue calibrating access accordingly; for example, Victory Securities recently closed virtual currency trading for users with Mainland China identities, as reported by Techub News. That separation underscores how local permissions are anchored to Hong Kong’s rules and may not translate across borders.

Company leadership has framed the approval as both a competitive and client-focused achievement following earlier traction in virtual asset activity. “First again,” said Kennix Chan, Executive Director at Victory Securities, highlighting the firm’s positioning following the license.

Immediate impact on market competition, access, and compliance requirements

The addition of VDX should incrementally increase competition for regulated crypto trading while keeping access measured by design. Under Hong Kong’s playbook following past market misconduct episodes, investor protection, operational robustness, and AML/CFT controls are non‑negotiable requirements, according to the South China Morning Post. The framework emphasizes segregation of client assets, conflict‑of‑interest management, and transparent disclosures, which collectively shape onboarding pace, eligible‑asset listings, and retail access conditions.

Approval cadence is still expected to be cautious, with licensing functioning as both incentive and guardrail for operators seeking to serve retail users, as reported by China Daily Hong Kong. In practice, near‑term market share shifts will likely depend on how quickly newly licensed platforms satisfy ongoing reviews of product scope, risk controls, and disclosures.

At the time of this writing, broader market context shows Bitcoin (BTC) near $68,108 with very high 12.30% volatility and an RSI of 37.24, while short‑term sentiment readings were described as bearish. These figures provide backdrop rather than any indication of tokens eligible for trading on licensed Hong Kong venues.

VATP, Type 1, Type 7, and AMLO custody explained

Under the Securities and Futures Commission’s rulebook, a VATP license brings a crypto trading platform under securities‑style oversight where applicable; Type 1 authorizes dealing in securities and Type 7 authorizes providing automated trading services, according to the SFC. When custody is licensed under AMLO, platforms must implement AML/CFT controls and safeguard client assets with clear segregation and risk management aligned to statutory requirements.

In operational terms, this stack means trading, matching engines, and custody each sit within defined regulatory scopes, helping regulators assess conflicts, resilience, and disclosure quality before expanding product access. For investors, it indicates that retail availability, asset eligibility, and onboarding standards are contingent on platforms meeting and maintaining those controls over time.