Crypto Hong Kong: SFC to Pick Out Tokens for Retail Trading

Hong Kong securities watchdog will propose a subset of tokens it would allow for retail investors' trading, its chief executive said on Wednesday, as it presses on with its ambitious plan to become a global crypto hub. This move signifies a major step forward in Hong Kong's evolving digital asset landscape.

In 2025, Hong Kong introduced a regulatory regime allowing retail investors to trade cryptocurrencies by requiring exchanges operating in the city to apply for regulatory licensing. This comprehensive framework aims to provide a safer and more secure environment for retail participation in the crypto market.

As a result, all centralised VATP carrying on business in Hong Kong, or actively marketing their services to Hong Kong investors, will need to be licensed by the SFC. This licensing requirement ensures that crypto exchanges adhere to stringent standards, protecting investors and maintaining market integrity.

The global crypto industry has largely responded positively to Hong Kong’s policy shift. Industry experts highlight that Hong Kong’s attempt to institutionalize digital asset trading could attract significant investment and innovation to the region. By identifying specific tokens suitable for retail trading, the SFC aims to balance innovation with investor protection, fostering a sustainable and thriving crypto ecosystem in Hong Kong.

Stay tuned for further updates as the SFC unveils its proposed list of tokens, and for continued developments in Hong Kong's journey to becoming a leading global crypto hub.