"Hong Kong Grants First Crypto Licenses in 2025, XRP Excluded"

Hong Kong's financial regulator, the Securities and Futures Commission (SFC), has granted licenses to two local exchanges, PantherTrade and YAX, to operate in the city. This marks the first crypto trading licenses issued in Hong Kong in 2025. The SFC has approved only four cryptocurrencies for trading: Bitcoin, Ether, Avalanche, and Chainlink. Notably, Ripple's XRP is conspicuous for its absence from this list, raising questions about its regulatory standing in the region.

The SFC's approval process for crypto exchanges is rigorous, with licensed exchanges required to comply with strict regulations, including anti-money laundering (AML) and counter-terrorist financing (CTF) laws. To date, 10 crypto exchanges have registered under these regulations and are permitted to operate virtual asset trading platforms in Hong Kong. The SFC had initially planned to approve 11 crypto trading platforms by the end of 2024 but faced delays due to rigorous compliance checks. In December 2024, four virtual asset trading platforms were granted licenses, and regulators continue to work closely with exchange executives to ensure they meet financial standards.

The reason for excluding XRP from the approved list is unclear, but it may be related to Ripple's ongoing legal issues in various countries. The SFC has not provided any official explanation for this decision. Despite its widespread global adoption, XRP is not currently permitted for trading in Hong Kong, casting a shadow of doubt upon its regulatory standing in the region.