All crypto trading platforms in Hong Kong will now need to comply with SFC regulations

Ashley Alder, chief executive of the Securities and Futures Commission, made the declaration at FinTech Week. The agency had previously allowed crypto exchanges to opt into a voluntary regulatory framework if they handled security tokens, but Alder said that approach created gaps where platforms operated with no supervision whatsoever.

The SFC now plans to establish a new licensing requirement under the Anti-Money Laundering ordinance. "Once this new regime is in place, all virtual asset trading platforms in Hong Kong would be regulated, supervised and monitored under one of two regimes: the existing opt-in framework we introduced last year, or the proposed new licensing approach being announced today. Failure to do so would, of course, be an offence," Alder stated.

The timing coincides with a turbulent period for major crypto exchanges. BitMex co-founders face criminal charges in the United States. OKEx founder Mingxing Xu was detained roughly two weeks ago, a move that froze the platform's operations and left over 200,000 BTC inaccessible to users. Huobi has dealt with speculation that senior management was arrested, though the Singapore-based exchange disputed the claim via Twitter, stating: "Huobi Global is operating normally. We have become aware of rumours within our community about the arrest of a Huobi senior executive by local officials. We can share with confidence that these rumours are false."

All three exchanges maintain significant operations in Hong Kong. The regulatory shift ensures that platforms can no longer skirt oversight by claiming limited ties to the jurisdiction.