“Hong Kong is made for collaboration. Built for innovation, for companies, entrepreneurs, investors and professionals.”

Those were the opening words of John KC Lee, Chief Executive of the Hong Kong Special Administrative Region, as he officially kicked off Day 1 of the Hong Kong Fintech Week 2025.

The event opened with record-breaking energy, marking its 10th anniversary with the largest fintech gathering in the city’s history. It drew over 37,000 participants, 800 speakers, and 700 exhibitors from more than 100 economies, said John Lee, underscoring Hong Kong’s position as Asia’s fintech powerhouse and global connector.

Across the keynotes and forums, Day 1 set a definitive tone for the week ahead in Hong Kong Fintech Week 2025. It brought together policymakers, bankers, investors, and technologists to explore Hong Kong’s next chapter in finance.

Discussions ranged from the rise of AI, stablecoins, and biotech as the next trillion-dollar opportunities to the HKMA’s Fintech 2030 vision, centred on data, artificial intelligence, resilience, and tokenisation.

Here are five key highlights that capture the essence of the city’s evolving fintech story.

Charting the Next Fintech Chapter

A panel featuring Christopher Hui, Secretary for Financial Services and the Treasury of the Government of the Hong Kong SAR; Eric Xiandong Jing, Chairman of Ant Group; and Fred Hu, Founder, Chairman, and CEO of Primavera Capital Group, moderated by Drew Propson, Head, Technology and Innovation in Financial Services at the World Economic Forum, explored emerging technologies in Hong Kong’s financial landscape.

During the session titled Curating the New Fintech Era, Christopher Hui identified blockchain and artificial intelligence as the most transformative technologies for Hong Kong’s financial sector. Citing HKMA data, he said about 75% of local financial institutions have already adopted or piloted generative AI, with that figure expected to surpass 87% within three to five years.

He also emphasised the importance of regulatory sandboxes and subsidy programmes in driving innovation and refining policy and regulatory frameworks.

Meanwhile, Eric Jing predicted a rapid adoption of genAI across financial services, from AI-powered customer-facing account managers to tokenisation for real-time global settlements. He emphasised Hong Kong’s position as an international financial hub that enables Chinese companies to expand globally, urging continued efforts to build on that advantage.

Fred Hu highlighted three areas to watch: automation in wealth management, the growth of green finance, and improvements in cross-border transaction efficiency and security. He called the Hong Kong government to prioritise cross-border data connectivity, as this would reduce data fragmentation. He also expressed his optimism about deeper data-sharing between Hong Kong and the Chinese Mainland.

Watch the full session here.

FinTech 2030 Sets the Stage for Hong Kong’s Fintech 3.0 Era

“Our forthcoming AI Strategy will unite banks, tech innovators, and academia to embed AI deeply into the sector’s infrastructure, in a way that is safe, scalable and future-proof.”

That was the message from Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), during his keynote address, as he unveiled the four strategic pillars of HKMA’s Fintech 2030 vision: data, AI, resilience, and tokenisation. Together, these pillars are designed to reinforce Hong Kong’s position as a resilient, future-ready global financial hub.

Reflecting on the city’s fintech journey over the past decade, Eddie Yue described the next chapter as Hong Kong’s “Fintech 3.0 Era”, one where technology is seamlessly embedded in daily life, underpinned by trust, transparency, and intelligence.

On AI, Eddie Yue noted that the technology has moved from experimental to essential, with over three-quarters of Hong Kong’s banks already deploying AI solutions. He called for greater industry collaboration to co-create a shared AI infrastructure, as this would enable smaller and mid-sized banks to access and benefit from the technology, too.

He also reaffirmed tokenisation as a top priority, calling it a key enabler for cross-border investments and frictionless financial infrastructure. Finally, he highlighted resilience as more than just the ability to withstand shocks. It is also the capability to stay secure, adaptive, and forward-looking through every new wave of innovation.

Watch the keynote replay here.

Hong Kong’s Role in the Future of International Financial Centres

In the segment on Sustaining Excellence: Hong Kong’s Role in the Future of International Financial Centre, Paul Chan, Financial Secretary of the Government of the Hong Kong SAR, outlined Hong Kong’s strategic vision for financial innovation, underscoring the role of regulators as enablers.

He highlighted initiatives such as Project Ensemble, the tokenisation of green bonds, and the government’s AI+ strategy, all aimed at ensuring Hong Kong’s financial system remains sustainable, secure, and globally competitive. He shared,

“In the financial sector, we firmly believe that digitalisation is a transformative force that must be embraced. It enhances efficiency, reduces costs, enables more personalised services, and plays a critical role in promoting financial inclusion.”

The session brought together some of the most influential voices shaping global finance. Aside from Paul Chan, it also featured Georges Elhedery, Group Chief Executive of HSBC, and Bill Winters, Group Chief Executive of Standard Chartered. Alpha Lau, Director-General of Investment Promotion at Invest Hong Kong, moderated the discussion.

The discussion, one of many in Hong Kong Fintech Week 2025, explored Hong Kong’s role as both a bridge linking global institutions with the Chinese Mainland and a launchpad for Mainland enterprises going global.

Panellists agreed that Hong Kong is on track to surpass Switzerland as the world’s leading cross-border wealth management hub, supported by its robust financial ecosystem, live adoption of tokenised assets and blockchain settlements, and the expansion of “Connect” schemes into the Middle East and Southeast Asia.

Watch the full session here.

AI, Stablecoins and Biotech Supercharge the Next $1 Trillion Asset Class

In the session titled Tech Megatrends and the Next $1 Trillion Asset Class, Duane Kuang, Founding Managing Partner at Qiming Venture Partners, and John Lindfors, Co-founder and Managing Partner at DST Global, explored the technologies shaping the next transformative wave in technology and investment.

The discussion was moderated by Emily Tan, Anchor and Senior Correspondent at CNBC International.

The panellists identified AI as the most transformative megatrend, pointing to Nvidia’s $5 trillion market capitalisation as a symbol of the sector’s exponential growth.

While valuations may appear overheated in the short term, both experts agreed that AI is far from an industry-wide bubble, particularly in China, where AI remains relatively underdeveloped compared to the United States. Both Kuang and Lindfors also emphasised that the strength of evaluating teams and market potential mattered more than traditional financial metrics for early-stage AI firms.

The conversation also turned to stablecoins, now adopted and regulated in 11 key jurisdictions, including Hong Kong, Japan, Singapore, the UK, the US, and the UAE and catalysing innovation in cross-border payment systems.

View the replay here.

Reimagining Personal Banking With Technology, Trust and Self-Sufficiency

In the segment on Personal Banking in the Platform Era: Trust, Technology, and Cross-Border Access, leading figures from regional and international banks shared how AI, digitalisation, and cross-border integration are reshaping the personal banking landscape.

The discussion underscored how trust, data, and technology now define the next phase of competition and growth for financial institutions.

Arnold Chow, General Manager of the Personal Banking Product Department at Bank of China (Hong Kong), highlighted the bank’s digital transformation journey over the past five years, which has lifted efficiency by 8% and grown market share to 30% in select product segments.

He noted that AI is now embedded across wealth and risk protection as well as for training for frontline staff, with upcoming plans to deepen digital partnerships within and beyond the Greater Bay Area.

Alfian Sharifuddin, Managing Director and Head of Technology and Operations for Hong Kong and Mainland China at DBS Bank Hong Kong, spoke on the importance of trust in AI. To mitigate the risks of AI hallucinations, DBS has implemented a Retrieval-Augmented Generation (RAG) framework that enables its Large Language Model to operate in a controlled environment.

Colin Cui, Vice President and Head of Regional Finance Business at Huawei Asia Pacific, detailed how the company’s continuous reinvestment of roughly 20% of its annual revenue into R&D enables Huawei to self-design and manufacture competitive solutions. This ensures a rapid response to market trends and customer needs.

Huiya Yao, Head of Fintech Innovation at WeBank, emphasised that AI adoption requires a mindset shift across all banks, including mid-tier enterprises. WeBank’s internal AI training and certification programme equips teams with AI literacy, complemented by a delivery model that empowers its business departments to develop their own AI applications.

Moderated by King Leung, Global Head of Financial Services, Fintech and Sustainability at Invest Hong Kong, the discussion concluded with his observations. He shared that China continues to lead in advanced technology adoption, while Hong Kong’s position as a fintech hub drives competition, innovation and its crucial role within the Greater Bay Area.

Follow the latest updates on the Hong Kong Fintech Week 2025 from Fintech News Hong Kong.

Featured image by Invest Hong Kong

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Yet for all the progress, the players still face their toughest milestone yet: profitability.

According to the Hong Kong Fintech Report for 2025, while banks like livi bank and Mox have managed to narrow the gap between net interest income and losses, none turned a profit as of FY2024.

Sustainable profitability remains a box to be ticked.

Source: Hong Kong Fintech Report 2025

And the stakes in the pool are only getting higher. Globally, the digital banking market is projected to reach US$15.4 trillion by 2032, according to SEON.

The real question now is this: which levers will Hong Kong’s digital banks pull to finally cross the profitability mark?

WeLab Bank

A couple of months ago, WeLab shared that it hit profitability in Q12025, without taking into account tax and share-based compensation expenses. The digital bank’s milestone announcement said that it is on track to secure its full-year profitability target.

In an interview with Fintech News, WeLab’s Founder and Group CEO, Simon Loong, shared that the relentless pursuit of a viable business model has been WeLab’s cornerstone of building a profitable digital bank.

The group has anchored its strategy on online lending and digital wealth management, products with clear and sustainable revenue streams.

WeLab Bank CEO Tat Lee also divulged that the bank plans to broaden its offerings with new products and business banking services, while also investing in AI-driven agents to deliver more tailored investment and lending solutions.

ZA Bank

ZA Bank, Hong Kong’s first digital bank, has been active in 2025 with a string of strategic initiatives. Most recently, it announced its collaboration with BNY, a global financial services company.

ZA Bank intends to tap into the latter’s USD clearing capabilities, extensive account network, and cross-border infrastructure to deliver seamless and secure international payment solutions to its customers.

The bank has also integrated Click to Pay with Visa as a standard card feature, offering customers a faster and more secure online checkout experience. The tokenised solution, powered by Visa Token Service, replaces sensitive card details such as 16-digit Primary Account Numbers with tokens, adding multiple layers of security.

Beyond product enhancements, ZA Bank’s parent company, ZA Global, led a US$40 million Series A2 financing round for RD Technologies. Alongside the funding, ZA Bank signed an MoU with RD Technologies, covering custodial infrastructure and a distribution partnership.

Leadership changes have also been part of its 2025 story, with Calvin Ng appointed as the bank’s new CEO in March.

These developments show that ZA Bank’s strategy is three-pronged. It consists of strengthening the bank’s cross-border capabilities, deepening its ecosystem partnerships, and upgrading customer-facing offerings.

Ant Bank

Ant Bank secured a US$100 million capital injection from its parent company, Ant International, in April 2025. The funds will be channelled into strengthening its services and product innovation, expanding partner collaborations, and delivering more personalised and flexible financial solutions to customers.

Leveraging Ant International’s technological strengths, the bank has rolled out a suite of inclusive financial services, including low-interest personal revolving loans and affordable fund investment products starting from just HK$1.

Additionally, Ant Bank announced a strategic partnership with AXA Hong Kong and Macau and AlipayHK to introduce embedded insurance offerings powered by advanced technology. The partnership combines AXA’s expertise and extensive portfolio with Ant Bank and AlipayHK’s “E-wallet X Digital Bank” model to create a seamless insurance experience.

Taken together, these moves point towards a strategy centred on financial inclusion and ecosystem partnerships.

Mox Bank

This year, Mox Bank rolled out its first general insurance product, Personal Accident Cushion, offering three plan options tailored to different customer needs starting from HK$20 monthly. Underwritten by QBE, the plan provides coverage for accidental death or permanent disablement, with double indemnity for incidents that occur while travelling as a fare-paying passenger on public transport.

Looking ahead, Mox plans to broaden its insurance offerings to compete more directly with traditional insurers. At the same time, the bank is working to strengthen its wealth management services, refine its lending products, and introduce new digital features designed to elevate the overall customer experience.

Mox’s CEO Barbaros Uygun also recently highlighted a central theme shaping its digital banking landscape: customer empowerment. He noted that empowerment represents a new model for banking, one where banks and customers work together to create solutions that genuinely make a difference.

PAOBank

PAOBank started the year strong by launching its Cross-Border E-Commerce Revolving Loan in January, intending to empower SMEs to scale their e-commerce business presence.

Developed in collaboration with Mybooster, a partner of Amazon’s Seller Lending Programme, the facility gives local SMEs greater flexibility and convenience in accessing financing, using commercial data to streamline credit assessments.

PAOBank also secured a license from the Insurance Authority and entered strategic partnerships with both FWD and China Ping An Insurance (Hong Kong) Company Limited, setting the stage for an accelerated push into insurance product offerings.

At the leadership level, the bank appointed Ronald Iu, formerly of ZA Bank, to head its management team. Under his direction, PAOBank is looking to leverage advanced financial technology while deepening its footprint in SME and retail banking.

It seems that PAOBank’s strategy for 2025 is centred on strengthening its SME financing capabilities, expanding into insurance through new licenses and partnerships, and leveraging fresh leadership to drive technology-led growth.

livi bank

According to its press release, livi bank has been sharpening its focus on SME innovation, offering solutions such as the SME Financing Guarantee Scheme to address a wide range of business needs.

Beyond lending, the bank is also playing an active role in shaping Hong Kong’s fintech landscape, joining the first cohort of the GenAI Sandbox in collaboration with the HKMA and Cyberport.

Looking ahead to 2025, livi bank plans to build on this momentum by strengthening its lending and insurance services, while broadening its fintech offerings.

Fusion Bank

Fusion Bank started off the first quarter of 2025 strong, with the completion of its core banking system migration with Tencent Cloud. According to Billy Chiu, the Alternative Chief Executive and Chief Technology Officer of Fusion Bank, the upgrade is expected to deliver a 53% reduction in non-labour IT costs compared to 2024.

The new core system is also set to enhance agility, allowing Fusion Bank to react faster to market shifts and speed up the rollout of new products.aIR

In parallel, the bank also signed a commercial cooperation agreement with WeBank Technology Services, a subsidiary of China’s WeBank, giving it access to proprietary digital banking technology.

These moves reflect a strategy focused on driving efficiency gains through technology and strengthening digital infrastructure to compete more effectively.

Airstar Bank

Airstar Bank has completed the full migration of its operations to the cloud with Tencent Cloud, a move it says will help lower costs, speed up product iteration, and allow resources to scale dynamically in line with future business expansion.

The bank was also among the first to join the launch of Payment Connect, a joint initiative by the HKMA and PBoC that enables instant cross-border payments between the two jurisdictions. In March 2025, Airstar further strengthened its leadership team with the appointment of Ting Jiang as Chief Risk Officer.

Together, these steps point to a strategy focused on strengthening Airstar’s technology backbone, supporting cross-border ambitions, and reinforcing risk governance.

Featured image by vecstock on Freepik

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Within its pages, the HKMA outlined its thoughts on developing a regulatory framework for payment-related stablecoins, which could be a priority.

At the time, stablecoins were seen as having the potential to become a widely accepted form of payment, with the regulator also signalling a need for flexibility, leaving room to expand the scope of regulation as the market evolved.

What followed quickly after was a wave of volatility in the stablecoin market. Most notably, the collapse of TerraUSD’s value. Several crypto exchanges, including FTX, also came under fire. The need for a regulatory regime became undeniable. But was there enough demand to justify it?

The response to the discussion paper was sound. The HKMA received 58 submissions, with most respondents expressing support for the proposal to bring stablecoins within the regulatory perimeter.

Fast forward to today, and 1 August 2025 represented a milestone moment with the launch of Hong Kong’s long-awaited Stablecoins Ordinance, unveiling one of the world’s most closely watched regulatory frameworks for crypto assets.

What is the Stablecoins Ordinance all about, though? And what’s happening on the Western front with the GENIUS Act?

A Closer Look at Hong Kong’s Stablecoin Licensing Playbook

The Stablecoins Ordinance, which came into effect on 1 August 2025, sets out stringent requirements for prospective issuers. Only companies incorporated in Hong Kong or locally licensed banks can apply, and they must hold at least HK$25 million in paid-up share capital.

Issuers must also maintain 100% reserve backing, held in segregated, bankruptcy-remote trust accounts, and allow token holders to redeem at par value within one business day. These safeguards are in place to prevent the kind of collapses that have plagued the crypto sector, ensuring that stablecoins live up to their namesake.

The framework also subjects issuers to the same anti-money laundering and counter-terrorism financing rules as traditional financial institutions. This includes real-time transaction monitoring and compliance with the Travel Rule.

To support its rollout, the Hong Kong Monetary Authority (HKMA) published a series of detailed documents tailored to stablecoin issuers. These include two finalised guidelines on the supervision of licensed stablecoin issuers, as well as dedicated guidance on anti-money laundering (AML) and counter-financing of terrorism (CFT) compliance.

An explanatory note was also issued, outlining the licensing process and key requirements under the new regime. The HKMA invited applications from parties who “consider themselves sufficiently ready and wish to be considered,” with a submission deadline set for 30 September 2025.

As of 29 July 2025, no licenses have been issued, with the first batch only expected in early 2026. According to Darryl Chan, Deputy Chief Executive of the HKMA, only a limited number of licenses will be granted in the initial round. Initial reports indicate that over 50 firms have announced plans to issue stablecoins.

The HKMA has expressed that in the future, the public can refer to its register of licensed stablecoin issuers, and those who hold unlicensed stablecoins are at their own risk.

Now, how does Hong Kong’s regulatory approach differ from the United States’ GENIUS Act, which was signed off by President Donald Trump on 18 July 2025?

The GENIUS Act Sets the U.S. Path for Stablecoin Regulation

At its core, the GENIUS Act establishes the first-ever federal regulatory framework for stablecoins in the U.S., mandating 100% reserve backing using liquid assets such as U.S. dollars and short-term treasuries.

The White House issued a fact sheet on the GENIUS Act on the same day, which gives an elaborate yet clear breakdown on how it would work.

Issuers are required to publicly disclose reserve compositions on a monthly basis, adhere to strict marketing rules, and refrain from any implication that their tokens are government-backed, legal tender, or federally issued.

In the event of insolvency of a stablecoin issuer, the GENIUS Act prioritises consumer claims over other creditors, which is said to deliver the “final backstop towards consumer protection.” The GENIUS Act also aligns with State and Federal stablecoin frameworks.

The legislation also aims to protect and reinforce the U.S. dollar’s role as the world’s reserve currency. By requiring that stablecoins be backed by U.S. debt instruments, the Act drives demand for treasuries and also anchors digital asset growth to the strength of the dollar.

From a compliance standpoint, the GENIUS Act brings stablecoin issuers under the scope of the Bank Secrecy Act, obligating them to implement effective anti-money laundering (AML), sanctions, and customer verification programs.

Issuers must also have the technical capability to seize, freeze, or burn payment stablecoins when deemed necessary under legal requirements, marking a clear intersection between stablecoins and national security enforcement.

New Developments on Stablecoin Ordinance Sparking Concern

Closer to home, industry stakeholders in Hong Kong have raised concerns that stringent customer identification requirements could hinder the effective adoption of stablecoins. This, in turn, could diminish their appeal in the global digital finance landscape.

Market participants have pointed out that the finalised KYC rules, which require issuers to verify the identity of every stablecoin holder, could raise privacy concerns and potentially slow the broader adoption of the digital asset.

Bo Tang, Head and Assistant Director at the HKUST Institute for Financial Research, noted to Reuters that the rules could pose operational challenges, especially for businesses involved in cross-border payments.

He added that the HKMA’s strict regulatory stance may also be a response to recent speculative activity in local financial markets, where shares of companies linked to stablecoins spiked earlier this year but dropped sharply after the bill was passed.

Balancing the Fine Line in Market Reach, Innovation & Stability

The success of these regulatory frameworks will ultimately hinge on their ability to strike a delicate balance,  encouraging innovation while safeguarding and attracting consumers.

Hong Kong’s recent stakeholder concerns around stringent KYC requirements underscore the trade-offs at play. Regulate too tightly, and regulators risk stifling the very innovation they aim to legitimise. Operate too loosely, and they risk opening the Pandora’s box of failures that brought down TerraUSD and FTX in the past.

The choices made by Hong Kong, the US, and other markets will help determine whether stablecoins truly live up to their name.

Featured image: Edited by Fintech News Hong Kong, based on image by freepik on Freepik

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Founded in Hong Kong by a former banker, WeLab has grown from a single-market startup into a multi-licensed digital banking player, operating in Hong Kong and Indonesia with a third licence under application in Thailand.

In just over a decade, the group has amassed 70 million users and 700 enterprise customers. It has also facilitated over US$15 billion in loans in Hong Kong, milestones that showcase its scale and staying power.

Backed by heavyweight investors, including Sequoia, Khazanah Nasional, and the International Finance Corporation, WeLab’s digital bank also achieved a pivotal milestone in early 2025: profitability. This marked a significant breakthrough, as WeLab Bank joined the rarefied group of digital banks that have managed to turn a profit.

Now, their next goal is to serve half a billion customers across the region by 2032. 

At this year’s Money20/20 Asia, Fintech News Hong Kong’s Chief Editor, Vincent Fong, sat down with WeLab’s Founder and Group CEO, Simon Loong, to walk through WeLab’s journey, including the mindset fuelling it towards growth and profitability and why regional expansion is central to its next chapter.

Keeping the Startup Mentality Alive at the Core

How does WeLab maintain a good helicopter view yet still balance the need to be in the details, Vincent asks, pointing to a challenge many businesses face as their companies grow. To this, Simon shares that having a strong team by your side definitely helps smooth things out.

Also, in every market, WeLab is structured such that it has independent management teams, all capable of running operations without Simon’s direct involvement. This, Simon explains, has allowed the company to scale, even during tough tides like the pandemic.

Yet despite the growth and his evolving role as group CEO, Simon says one thing has remained constant: a commitment to what he calls the startup mentality.

“We always remember the startup mentality. The hunger for success. The paranoia for competition. The fear for failure. I think that mentality has driven me and the team to where we are, without losing sight of the big picture.”

This mindset, he adds, keeps the team focused on exponential growth targets, like aiming for 20% year-on-year gains rather than settling for single-digit growth.

“We are still small in the overall scheme of things. If we deliver 3% to 5% YoY growth, we will always be small. Having that mentality reminds us, every day, about what we must do.”

What’s the Blueprint for a Profitable Digital Bank?

“The secret sauce is a couple of things. Firstly, it’s our relentless focus on building a profitable business model.” Simon shares.

He continues, explaining that within the digital banking space, like in retail and SME segments, there are only a handful of products that generate meaningful revenue. Traditional products like deposits and payments, he points out, tend to yield slim margins.

By focusing on online lending and digital wealth management, WeLab has concentrated its efforts on products with clear revenue models. This focus has paid off, as WeLab Bank has managed to become the third-largest personal lender in Hong Kong among all lenders, holding an impressive 16% share.

“One in six people in Hong Kong borrow (personal loans) from us,” he shares.

He added on that good risk management is also central to being profitable, and his background in risk management has been crucial in navigating this.

@fintechnewsnetwork

WeLab’s Bold Plan: 500M Users. $100M Profit. One Decade From a digital lending startup to a pan-Asian fintech player, WeLab has set its sights on an ambitious goal: 500 million users and $100 million in profit by 2032 — here’s how they plan to achieve it. #fintech #welab #digitalbanking #AsiaFintech #fyp

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The final piece of WeLab’s profitability playbook lies in its partnership strategy. As a challenger bank, acquiring customers purely through head-to-head competition with incumbents would be one of the toughest and costliest battles to fight.

Instead, WeLab turned to strategic collaborations with aspirational brands like Apple, using these partnerships to reach premium customer segments with stronger credit profiles.

“You want to tap into that affluent or premium base, which gives you good credit and also future cross-sell opportunities for digital investment products.”

These partnerships have allowed WeLab to scale faster while creating natural pathways to cross-sell its products and solutions effectively.

The Road to 500 Million Users

WeLab’s next chapter is defined by one audacious goal: serving 500 million customers across Asia by 2032. It’s a bold leap from the company’s current 70 million users. But Simon believes the timing is just right.

The goal was announced publicly, a deliberate move to hold the group accountable.

“We want to be very explicit and public about it, so that we give ourselves the pressure to hit that target.”

The question is how to get there, though? With Asia’s sizeable market and rising appetite for digital banking, Simon sees plenty of headroom for growth. For Simon, the answer rests on two pillars.

The first is the drive to become the first truly pan-Asia digital bank, expanding beyond Hong Kong and Indonesia, securing a licence in Thailand, and looking to more markets.

“We’re looking at how to build the first pan-Asian digital bank, which is a massive opportunity that only exists now compared to when digital banks were not as popular,” he explains.

Next is WeLab’s deep investment in AI, which Simon views as the company’s differentiator to leapfrog competition and serve one step ahead of the game.

“We’re happy to share that the Hong Kong Investment Corporation Limited invested in us to further help us on these two courses.”

With the HKIC’s support, WeLab aims to elevate Hong Kong’s leadership in developing advanced technology in financial services. AI agents, for example, are tools that Simon believes will shift AI from simply predicting outcomes and generating insights, to executing tasks on behalf of customers.

What Else Is On The Cards for WeLab?

For a closer look at Simon’s perspective on what it really takes to run and grow a profitable fintech group, watch the full interview below on YouTube.

The post WeLab Hit Profitability and Now Wants 500 Million Customers Across Asia appeared first on Fintech Hong Kong.

Now, midway through 2025, the question beckons: has the city realised its strategy, or is it still catching up?

An Overview of Fintech 2025

Back in June 2021, the Hong Kong Monetary Authority (HKMA) showcased Fintech 2025, a strategic blueprint to accelerate the city’s fintech development. The vision was anchored on three key pillars: demand, data, and ecosystem.

The need to spur demand by facilitating the adoption of technology for banks. The drive to strengthen data infrastructure to enable fintech applications. The underlying need to grow Hong Kong’s fintech ecosystem.

The framework focuses on five areas: All Banks Go Fintech, Future-Proofing for CBDCs, Creating Next-Gen Data Infrastructure, Expanding Fintech-Savvy Workforce, and Nurturing Ecosystem with Funding and Policies.

A Glance at the Current State of Hong Kong’s Fintech 2025

How far along has Hong Kong come in turning its Fintech 2025 vision into a reality?

All Banks Go Fintech

This part of the Fintech 2025 plan focused on driving widespread fintech adoption across Hong Kong’s banking sector through five key initiatives: regtech adoption, exploring greentech, offering guidance on using novel technologies, conducting a tech baseline assessment and reinforcing the HKMA’s commitment to digitalisation.

Since then, the HKMA completed the Tech Baseline Assessment in June 2022, which was used to evaluate banks’ fintech adoption. It also identified further developments in wealthtech, insurtech, greentech, AI, and Distributed Ledger Technology or DLT.

To build on this momentum, the Fintech Promotion Roadmap was introduced in August 2023. It outlined a series of initiatives for the HKMA, the Securities and Futures Commission (SFC), and the Insurance Authority (IA) to push fintech adoption even further.

It featured a packed lineup of activities over the following 12 months, which included showcase events, roundtables, seminars, and a new Fintech Knowledge Hub, as well as training sessions, practical guidelines and promotional videos.

In doing so, these efforts opened up avenues for financial institutions to share practical insights, spark cross-sector innovation, and grow their fintech networks.

Future-Proofing for Central Bank Digital Currencies (CBDCs)

This segment focused on preparing for CBDCs at both retail and wholesale levels, exploring e-HKD, deploying e-CNY for cross-border transactions, and leveraging the multiple CBDC Bridge for wholesale markets.

This included Project mBridge, a cross-border CBDC initiative involving Hong Kong and several other central banks which hit its minimum viable product stage in 2024. Moving forward, the goal is to bring more public and private institutions onboard, creating a stronger network effect.

The HKMA is also using its CBDC research to advance the tokenisation market. In 2024, it launched Project Ensemble, introducing four initial themes for initial tokenisation experiments. The HKMA has since built and launched a sandbox designed for interbank settlements using experimental tokenised money, focusing on transactions involving tokenised assets.

As of April 2025, the sandbox is testing use cases such as liquidity management, supply chain finance, green finance, and investment funds, with Ant Group now an active participant.

Project Ensemble’s scope extends beyond Hong Kong, with collaborations involving central banks in Thailand, Brazil, and France to explore cross-border tokenisation applications.

Next-Generation Data Infrastructure

The third segment aims to boost technology adoption across the industry by strengthening infrastructure enablement. This includes initiatives such as the Commercial Data Interchange (CDI), a digital corporate identity framework, and a DLT-based credit data sharing system.

Launched in October 2022, the CDI has simplified data sharing between banks and data providers by replacing multiple one-to-one connections with a single streamlined link.

It encourages innovation by allowing a high level of independence among participants, standardises APIs for easier integration, and ensures that all data exchange is consent-based for added control and security.

From its launch to March 2025, the platform has attracted over 40 participants and facilitated an estimated HK$41.9 billion in credit approvals.

Next, according to a notice from the Office of the Government Chief Information Officer in June 2024, the government will set up a digital corporate identity platform, dubbed the “business version of iAM Smart.”

The expenditure is estimated to be at about $300 million, and the aim is to roll the platform progressively from end-2026 onwards.

Expanding the Fintech-Savvy Workforce

This segment focuses on developing well-rounded fintech talent, targeting both students and industry practitioners. Key initiatives include capacity-building programmes, the Enhanced Competency Framework on Fintech, the Industry Project Masters Network (IPMN), and the establishment of fintech labs.

In a keynote speech in November 2024, Eddie Yue, Chief Executive of the HKMA, shared that the HKMA used a two-pronged talent strategy: upskilling existing banking professionals while attracting new talent into the industry.

Programmes such as the Fintech Career Accelerator Scheme (FCAS) and IPMN have already nurtured more than 1,500 young talents, many of whom have continued their careers in finance and fintech after graduation.

The HKMA has also worked closely with strategic partners, including Bloomberg and the GBA Fintech Talent Initiative, to further strengthen talent development efforts.

Nurturing the Ecosystem with Funding and Policies

The final segment centres on supporting the growth of Hong Kong’s fintech industry through coordinated initiatives such as the HK Growth Portfolio, Fintech Supervisory Sandbox (FSS) 3.0, and the Cross-Agency Coordination Group.

The FSS enables banks and their technology partners to run pilot trials of fintech solutions with a limited pool of participating customers, without requiring the need for full compliance with the HKMA’s supervisory framework during the testing phase.

To further enhance the sandbox, the HKMA partnered with Cyberport to launch FSS 3.1 in 2024. By the end of June 2025, the sandbox had already facilitated 373 pilot trials of fintech initiatives.

Want the Full Picture of Hong Kong’s Fintech?

This article only scratches the surface of Hong Kong’s fintech transformation.

The full Fintech Hong Kong 2025 Report by Fintech News Hong Kong dives deeper into funding trends, regulatory milestones, digital banking performance, and key players shaping the next wave of innovation.

Download the full report to explore exclusive fintech insights on what’s next for Hong Kong.

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But in the world of digital assets, these twin engines are increasingly running on different fuels.

While Beijing has always clamped down hard on cryptocurrency trading and mining, confusion on its stance does arise. In fact, just this past week, unverified yet widely circulated rumours of a new China Bitcoin ban surfaced online, allegedly stemming from a Binance report, though unconfirmed, according to Cointelegraph.

Hong Kong, by contrast, has charted a different course, enforcing a stringent regime for virtual asset service providers (VASPs). It has also applied a swift licensing process for virtual asset trading platforms.

This divergence is now becoming more than a regulatory footnote. It may be shaping how the Chinese authorities handle crypto assets from China as they seek more effective control.

Beijing’s Hardline Stance

According to the World Economic Forum, the People’s Bank of China banned all cryptocurrency transactions in 2021. It cited concerns around financial crime enablement, as well as a risk to China’s financial ecosystem, given the highly speculative nature of digital assets.

Since then, enforcement has only intensified.  From 2019 to June 2024, Chinese authorities publicly recorded 2,206 criminal cases involving digital currencies, according to a report by the South China Morning Post.

In a report published in September, People’s Court Daily, a newspaper by China’s Supreme People’s Court, estimated that by the end of 2022, cryptocurrencies awaiting disposal by Chinese authorities were worth several billion US dollars.

Authorities seized vast quantities of crypto assets from illicit operations, but the question of how to deal with those assets has lingered.

Interestingly, another South China Morning Post report revealed that Beijing’s Public Security Bureau has partnered with the China Beijing Equity Exchange to begin liquidating seized crypto assets. Ironically, the assets will be sold through Hong Kong’s regulated platforms.

A statement on the bureau’s official WeChat account said that the proceeds would be converted into yuan and deposited into designated accounts. This marks the first time a mainland Chinese authority has detailed a process for offloading confiscated cryptocurrencies through Hong Kong’s virtual asset infrastructure.

This approach underscores a paradox: while the mainland prohibits digital assets, it may now rely on Hong Kong’s more liberal regulatory infrastructure to convert them into fiat.

Hong Kong’s Regulated Ascent

Hong Kong, meanwhile, has continued to refine its regulatory posture. Its Financial Services and the Treasury Bureau announced a policy statement related to the development on virtual assets in 2022, sharing a focus towards risk-based yet prudent regulation.

In relation to virtual asset trading platforms, the Securities and Futures Commission has licensed eight exchanges, including HashKey Exchange and OSL Exchange. The SFC has also clarified that only licensed platforms can be used legally.

Unlike the mainland, Hong Kong isn’t attempting to ban crypto. It’s trying to control it through compliance. Platforms must meet criterias such as AML/CTF requirements and adhere to operational and cybersecurity standards.

This framework has positioned Hong Kong as one of Asia’s most transparent and accessible jurisdictions for digital asset trading.

A Strategic Alternate Door?

The contrast between Beijing’s prohibition and Hong Kong’s managed access raises an awkward but increasingly plausible scenario: Hong Kong may be acting as a controlled outlet for mainland crypto-related activity. This could be through licensed platforms facilitating asset disposals or as a testing ground for digital finance.

It’s not just about seized assets, either. Mainland companies, particularly fintech players like Ant Group, continue to seek IPO listings through Hong Kong’s stock exchange rather than domestic listings.

This reinforces the idea that Hong Kong remains a critical financial release valve for the mainland, even in sectors that Beijing heavily regulates at home.

Or A Controlled Risk?

Of course, none of this implies that Beijing is loosening its stance on China crypto assets and more. If anything, leveraging Hong Kong’s licensed platforms may be seen as a way to enforce tighter control: disposing of assets in a compliant, traceable, and offshore manner without legitimising domestic crypto activity.

But the move sends a signal about China crypto assets and how it’s being managed. China acknowledges that Hong Kong’s digital asset ecosystem, while separate, is strategically useful. It provides optionality.

And in a geopolitical environment where Beijing seeks control without closing itself off entirely from innovation or capital, that optionality matters.

By continuing to license digital asset platforms and establish regulatory clarity, Hong Kong is creating a sandbox for financial innovation, one that the mainland may leverage when needed.

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But for those tracking Hong Kong’s digital finance, this isn’t surprising.

The more interesting story lies beneath the surface: how local behaviours, infrastructure plays, and regulatory signals are shaping a uniquely Hong Kong path to cashless dominance, and how that future is arriving faster than most people realise.

Digital Wallets Set to Dominate by 2030

Hong Kong’s cashless growth underscores one significant shift: consumers increasingly prefer app-based, frictionless experiences over traditional payment methods like cash and plastic cards. For financial institutions and fintech organisations, it’s a race for ecosystem ownership.

Hong Kong’s wallet adoption is already ahead of many global markets, with AlipayHK leading the pack.

42% of Worldpay survey respondents chose AlipayHK as their preferred digital wallet. Trailing just behind, Octopus Wallet claims 23% of the market, with Apple Pay (22%), PayPal (18%), and WeChat Pay HK (14%) locked in a tight race for the next slice of consumer loyalty.

AlipayHK’s success may be attributed to its strong merchant network, localised incentives, and deep integration with everyday services.

To that end, players that want a share of this market must go beyond transaction speed and start delivering contextual financial experiences: loyalty integration, lifestyle incentives, bill splitting, micro-insurance, even health perks.

Credit Cards Are Going Incognito

The report revealed another key insight: 54% of respondents said they fund their digital wallets using credit cards, far ahead of bank accounts (16%) and cash (10%).

This reflects more than just convenience. Credit cards are deeply woven into Hong Kong’s payment habits, widely accepted across online and offline channels. For many, they’re already the default way to spend, making them a natural choice for topping up digital wallets.

Rather than disrupting traditional payment behaviour, digital wallets in Hong Kong appear to reinforce it; layering new functionality onto familiar routines. Credit card rewards, like cashback or points, further incentivise this behaviour, while access to instant credit makes them appealing for unplanned or high-value purchases.

Unlike in mainland China, where digital wallets are typically linked to bank accounts, Hong Kong maintains a stronger reliance on credit cards. This points to a distinct digital payment ecosystem shaped by local preferences and infrastructure.

That said, change may be on the horizon. The Hong Kong Monetary Authority’s Faster Payment System (FPS) has introduced real-time bank transfers between accounts and e-wallets. While currently less dominant, the rise of FPS signals a potential shift toward more direct bank-linked funding in the years ahead.

Also, major banks like HSBC, BOCHK, and Standard Chartered have responded by integrating wallet capabilities into their mobile banking apps or launching companion wallets of their own. This is a sign that incumbents are adapting.

For now, though, credit cards remain firmly in the driver’s seat in driving digital payment adoption.

Leaving No One Behind When Closing the Cashless Gap

Digital wallets are now mainstream in Hong Kong, with over 90% penetration in the past year. But for many elderly citizens, this digital shift remains out of reach.

Barriers like limited digital literacy, discomfort with smartphone interfaces, and unfamiliarity with mobile apps could continue to slow adoption among older adults. These challenges are well-documented, prompting targeted responses from the government.

Thankfully, programmes like the Smart Silver Digital Inclusion Programme provide training, technical support, and community outreach to help seniors navigate mobile payments and other digital tools.

Other markets have included similar initiatives, targeted onto the underserved. Singapore’s Hawkers Go Digital initiative, for example, introduced subsidies to encourage cash-reliant food centres and hawker stalls to switch to digital payments.

Similarly, Malaysia’s Touch’n Go ewallet focuses on breaking down the barriers of financial gaps for the underserved, unbanked and micro-SMEs and gig economy workers. The digital wallet offers micro-investment, micro-insurance, and micro-savings, among others, with partners like Visa, Alipay, AIA and MSIG.

As Hong Kong races toward a fully cashless future, the real benchmark of success won’t be its adoption rates, but whether no one gets left behind along the way.

The future of payments is inclusion + innovation

While credit cards remain the dominant funding source behind digital wallets today, their role is becoming more ambient than active. Increasingly, cards are being tokenised and embedded within mobile apps; invisible to the user, but still powering transactions behind the scenes.

This signals a deeper shift: from transactional tools to embedded ecosystems. Payments are no longer a discrete moment at checkout. It’s becoming part of a broader, contextual financial experience, one where brand visibility belongs not to the card, but to the app.

For banks and issuers, the challenge is to remain present in a world where loyalty shifts to platforms. Staying relevant requires embedding services into daily routines: through partnerships, wallet features, and super app ecosystems.

But progress isn’t just about innovation at the top. It’s also about expanding access at the margins.

The most sustainable future is inclusive. Hong Kong’s real test won’t be how quickly it digitises (it’s done a pretty great job already), but how equitably it brings every citizen along. From FPS infrastructure to elderly inclusion initiatives, the groundwork is there.

In fact, Hong Kong’s hybrid payment model may very well be the blueprint for where modern financial ecosystems are heading: fast, interoperable, platform-led, and crucially, inclusive by design.

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The competition is supported by the Institute of Sustainability and Technology, the Hong Kong Cyberport Management Company Limited, the Hong Kong Science and Technology Parks Corporation, and Invest Hong Kong.

Following the success of the first event in 2023 and considering recent market changes, the HKMA green fintech competition in 2025 focuses on five key themes. These themes outline how the banking and financial sectors can harness the potential of green fintech.

The themes are sustainable supply chain and SME enterprises, accelerating climate risk modelling and analytics, carbon market analytics and technology, sustainable investing, and sustainable banking and financing products.

The competition is a key part of the HKMA’s efforts to encourage collaboration between the financial and technology sectors, develop green fintech capabilities, and attract green fintech companies to grow their presence in Hong Kong.

Firms from Hong Kong and around the world are invited to submit innovative green fintech solutions addressing at least one of the listed themes. Submissions can be made through the competition website by 6 June 2025.

A panel of industry leaders, including experts from banking, investment, technology, professional associations, and academia, will evaluate the solutions.

The competition winners will have the opportunity to present and showcase their innovative solutions at the 2025 Green Fintech Symposium, which will take place on 12 September 2025.

An event of the 2025 Hong Kong Green Week, the symposium offers winners a platform to connect with key stakeholders, build partnerships, and explore business opportunities, all while spotlighting advancements in green fintech.

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At the heart of this evolution are the top fintech unicorns in Hong Kong. Startups valued at over $1 billion, which are redefining financial services and reinforcing the city’s position as a global fintech leader.

Unlike other major fintech hubs, Hong Kong’s unicorns operate in a uniquely regulated yet innovation-friendly environment, leveraging initiatives such as virtual banking licenses, digital asset regulations, and alternative investment frameworks to push the boundaries of digital finance.

According to Statista, Asia Pacific is home to 6,351 unicorns. As of 20 February 2025. Hong Kong is home to four prominent fintech unicorns: HashKey Group, WeLab, Micro Connect and ZA Group.

These companies are not just achieving high valuations. Their ability to scale within a robust regulatory framework, attract institutional and retail investors, and drive financial inclusion makes them pivotal to Hong Kong’s fintech success story.

In this article, we take a closer look at the full list of fintech unicorns in Hong Kong, their business models, and the impact they are making in Hong Kong’s rapidly evolving financial ecosystem.

What is a fintech unicorn?

A fintech unicorn is a private company in the financial technology sector valued at over $1 billion. These companies play a key role in reshaping financial services using cutting-edge technologies and innovative business models. They grow quickly, often through major investments and technological progress, allowing them to create new financial solutions and services.

Fintech unicorns in Hong Kong are key to driving innovation in areas like digital banking, asset management, and financial inclusion. They improve efficiency, accessibility, and customer experience through new technologies and services that meet changing market demands.

The Full List of Fintech Unicorns in Hong Kong

HashKey Group

HashKey Group is a key player in Asia’s digital asset financial services sector and is known for its innovative and comprehensive ecosystem. With a valuation exceeding $1.2 billion, HashKey provides services across trading, custody, asset management, and venture capital investments, catering to institutional and professional investors globally.

The group’s headquarters is in Hong Kong and it operates with a strong focus on regulatory compliance, security, and innovation.

HashKey operates HashKey Exchange, a digital asset exchange licensed by the Securities and Futures Commission (SFC) of Hong Kong, ensuring a safe and regulated platform for trading. The company also offers custody services, and its asset management division delivers blockchain-related investment strategies.

As of now, the group secured a $30 million investment from Gaorong Ventures, an in-principal approval for a VASP license in Dubai, and a virtual asset service provider approval in Ireland under its subsidiary HashKey Europe Limited.

WeLab

Next, WeLab also makes into the full list of fintech unicorns in Hong Kong.WeLab is a leading pan-Asian fintech platform with a strong presence in Hong Kong, mainland China, and Indonesia. It operates multiple brands, including WeLab Bank in Hong Kong, which is a wholly owned subsidiary of We Lab Holdings Limited.

WeLab Bank was granted a virtual banking license by the Hong Kong Monetary Authority in April 2019, becoming the first homegrown fintech company in Hong Kong to establish a virtual bank. It has since become a significant player in the digital banking landscape.

WeLab’s business model focuses on providing innovative digital financial services, leveraging technologies like AI, big data, and machine learning to enhance customer experience. Additionally, WeLab Bank has achieved its first breakeven in December 2024, attributed to its lowered lending costs and diversified revenue streams.

WeLab is backed by prominent investors such as Tom Group, Sequoia Capital, and Allianz Group. The group is exploring expansion opportunities in Southeast Asia, such as its recent Lightnet-WeLab Virtual Bank Consortium to elevate financial opportunities for underserved segments in Thailand.

Micro Connect

Micro Connect is an exchange group that uses financial technology to link global investors with small and micro businesses. Its unique revenue-sharing investment model provides small businesses with affordable, long-term funding through the Micro Connect (Macao) Financial Assets Exchange (MCEX), which the company claims to be the first licensed exchange for daily revenue sharing.

The group’s revenue-sharing asset class, Revenue Based Obligations (RBOs), provides investors with direct and diverse access to the transparent daily cash flows of the global consumer economy. At the same time, it makes capital accessible and affordable for business owners.

Through its licensed exchange (MCEX), Micro Connect aims to bring efficiency and liquidity to small business investing, offering global professional investors a new way into impact investing.

In September 2024, Micro Connect (Macao) Financial Assets Exchange (MCEX) launched a new market operating structure, Micro Star. Along with this, MCEX introduced a full set of rules and guidelines for the Micro Star system and unveiled the first group of listed market vehicles.

ZA Group

ZA Group is a financial brand launched in 2019 by ZhongAn Technologies International Group Limited (‘ZA Global’). It offers innovative services through a series of initiatives, including ZA Bank, ZA Insure, ZA Mall, ZA Tech and ZA Invest.

In December 2024, ZA Bank announced a positive market response to its Tax Loan, recording double-digit growth in both the number of applications and total loan amounts.

ZA Group also partnered with Hong Kong’s HashKey Exchange, to enable retail users to trade Bitcoin and Ethereum within the ZA Bank App. Doing so allowed its users to make fiat transactions in HKD and USD directly.

Hong Kong’s Healthy Fintech Ecosystem

Hong Kong is an effective hub for fintech unicorns, supported by strong government initiatives like the Cyberport Incubation Programme. This program offers up to HK$500,000 in financial assistance and rent-free workspace for startups. These efforts have been instrumental in the success of fintech and other industries.

Another key funding source is the Hong Kong Science and Technology Park (HKSTP), which provides up to HK$21.5 million in funding and global expansion opportunities, as highlighted in InvestHK’s Hong Kong Fintech Ecosystem Report 2025.

As a gateway to the Greater Bay Area and a magnet for global talent, Hong Kong offers unique opportunities for fintech startups. The city attracts global investors and provides businesses with the resources and a highly skilled workforce needed to drive innovation and growth.

What’s Next for Fintech Unicorns in Hong Kong?

Looking ahead, the next wave of fintech unicorns in Hong Kong will likely emerge in sectors rapidly gaining traction, such as embedded finance, decentralized finance (DeFi), AI-powered financial services, and sustainable fintech solutions.

The city’s regulatory approach, particularly around virtual assets, open banking, and cross-border fintech collaboration, will play towards shaping the next generation of industry leaders.

For instance, Hong Kong’s efforts in Web 3.0 and crypto regulations, as well as its advancements in open banking through initiatives like the Commercial Data Interchange (CDI), are setting the stage for future innovation.
Hong Kong’s commitment to fintech innovation continues to attract both startups and established financial institutions seeking to integrate digital solutions.

As capital markets evolve and consumer demand shifts towards more seamless, tech-driven financial experiences, new players are poised to disrupt the space, following in the footsteps of today’s fintech unicorns.

The HKMA’s “Fintech 2025” strategy further supports this growth by encouraging comprehensive fintech adoption across the financial sector and promoting equitable and efficient financial services.

FAQs

What is a fintech unicorn?

A fintech unicorn is a privately held financial technology company valued at over $1 billion.

How many fintech unicorns are in Hong Kong?

As of 2025, Hong Kong is home to four fintech unicorns.

What are the top fintech unicorns in Hong Kong in 2025?

Leading fintech unicorns in Hong Kong include HashKey Group, WeLab, Micro Connect, and ZA Group.

Why are Airwallex, Amber Group, and Babel Finance not in the list of fintech unicorns in Hong Kong for 2025?

Airwallex and Amber Group are now headquartered in Singapore. Meanwhile, Bloomberg revealed that Babel Finance suffered a $766 million loss in 2023.

Why is Hong Kong a hub for fintech?

Hong Kong’s supportive government policies, favourable business environment, and access to funding and talent make it an attractive hub for fintech innovation.

Source of image: Edited from Freepik

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Regardless of your crypto trading capabilities, understanding how to navigate Hong Kong’s regulated exchanges first is key to safely purchasing your digital assets here. This guide explains the processes you need to know, from choosing a licensed platform to securing your holdings, so you can trade confidently.

What is Cryptocurrency?

Cryptocurrency is a type of digital or virtual currency secured through cryptography and powered by blockchain technology. First introduced with Bitcoin in 2009, these currencies operate on decentralized networks that rely on blockchain—a distributed ledger maintained by a network of computers.

Originally designed to function independently of traditional financial systems, cryptocurrencies have seen their frameworks evolve under increasing global regulations. Approaches to their legal status and regulation differ widely across countries and regions.

Cryptocurrencies have their advantages, including faster and potential for lower-cost transactions, particularly for international transfers. However, they also face significant challenges, including high price volatility, regulatory uncertainty, and concerns about their potential misuse in illegal activities.

How to Invest in Cryptocurrency in Hong Kong

There are four main ways to invest in cryptocurrency in Hong Kong: using Virtual Asset Trading Platforms (VATPs), trading through Virtual Asset Over-the-Counter (VA OTC) dealers, working with SFC-licensed brokers, or investing in Crypto ETFs.

Virtual Asset Trading Platforms (VATPs)

VATPs are regulated platforms for cryptocurrency trading, licensed and supervised by the Securities and Futures Commission (SFC). As of February 2025, Hong Kong has nine licensed VATPs.

These platforms must meet strict regulatory requirements, including thorough customer due diligence (CDD) checks, comprehensive anti-money laundering (AML) and counter-terrorist financing (CTF) measures, strong cybersecurity and operational controls, and a commitment to fair and transparent trading practices.

SFC-Licensed Brokers

Traditional financial institutions, such as banks and securities firms, that have obtained licenses from the SFC can offer cryptocurrency-related services to their clients. These brokers are subject to SFC regulations and oversight, providing a degree of protection for investors. However, their range of cryptocurrency-related products and services may be more limited compared to VATPs.

For example, digital bank ZA Bank launched its crypto trading services in late 2024, enabling users to buy and sell Ethereum and Bitcoin from US$70.

Virtual Asset Over-the-Counter (VA OTC) Dealers

VA OTC dealers, including brokers, VA ATMs, and other digital platforms that facilitate cryptocurrency transactions, operate under a transitional arrangement. While they have applied to become VATPs, they have not yet obtained full approval.

These dealers are subject to some oversight but may not adhere to the same stringent standards as fully licensed VATPs. This lack of regulation increases the risk for consumers, as their funds could be vulnerable if the SFC rejects the dealer’s application for VATP approval.

Crypto ETFs

Hong Kong offers crypto spot ETFs, allowing investors to gain exposure to the cryptocurrency market without direct ownership of digital assets. These ETFs are subject to the same regulatory requirements as traditional ETFs, with SFC oversight too.

Hong Kong offered six spot Bitcoin and Ethereum ETFs in July 2024, providing the first avenue for Asian investors to trade them in this method.

How to Buy Cryptocurrency in Hong Kong

You’ll need to follow six steps to buy cryptocurrency here:

1. Choose a licensed exchange by selecting one of the SFC-approved platforms.
2. Create an account by signing up on your chosen exchange and completing the Know Your Customer (KYC) process.
3. Verify your identity next by submitting the relevant paperwork.
4. Fund your account by depositing Hong Kong Dollars through bank transfer, credit card, or other supported payment methods.
5. Place your order in the trading section and select the cryptocurrency you want to buy, such as Bitcoin or Ethereum.
6. Secure your assets by transferring your cryptocurrencies to a safe wallet for long-term storage.

Overview of Licensed Cryptocurrency Exchanges in Hong Kong

Here’s a table of licensed cryptocurrency exchanges in Hong Kong, including their maker and taker fees, and a brief overview of each company.

Source: Respective websites as of 5 February 2025

The Current State of Hong Kong’s Cryptocurrency Ecosystem

Hong Kong is solidifying its position as a leading Asian cryptocurrency hub with a measured yet progressive regulatory approach.

As of February 2025, the Securities and Futures Commission (SFC) has issued operational licenses to seven virtual asset trading platforms (VATPs) since mid-2024. Most recently, on January 27, 2025, PantherTrade and YAX secured SFC approval, bringing the total number of licensed crypto exchanges in Hong Kong to nine.

This licensing drive reflects the city’s strategy to foster innovation while ensuring investor protection. The SFC enforces strict regulatory measures, including rigorous Know Your Customer (KYC) protocols, asset safeguards, and cybersecurity standards.

To strengthen oversight, the SFC has proposed expanding its cryptocurrency regulatory team in its 2025-2026 budget, adding 15 new positions, eight of which will focus on virtual asset frameworks, market surveillance, and enforcement.

Beyond exchange regulation, Hong Kong is advancing its broader digital asset framework. The Stablecoins Bill, currently under review, seeks to regulate fiat-referenced stablecoin issuers, requiring them to obtain licenses from the Monetary Authority (HKMA).

With these developments, Hong Kong is shaping a regulatory model that balances market growth, investor protection, and compliance, reinforcing its role as a key player in the global cryptocurrency landscape.

FAQs

What are the best cryptocurrency exchanges in Hong Kong?

As of February 2025, Hong Kong has nine licensed Virtual Asset Trading Platforms (VATPs) regulated by the Securities and Futures Commission (SFC). These platforms must meet strict regulatory requirements, so they would ideally fall under the category of the best cryptocurrency exchanges for investing in Hong Kong.

What are the benefits of investing in Crypto ETFs in Hong Kong?

Crypto ETFs in Hong Kong offer a way for investors to gain exposure to the cryptocurrency market without directly owning digital assets. These ETFs are regulated like traditional ETFs and are subject to the oversight of the Securities and Futures Commission (SFC).

Crypto ETFs provide a safer and more accessible alternative for investors who want to invest in cryptocurrencies such as Bitcoin and Ethereum without managing individual coins.

What is the difference between VASP and VATP in Hong Kong?

In Hong Kong’s regulatory framework for virtual assets, Virtual Asset Service Providers (VASPs) and Virtual Asset Trading Platforms (VATPs) are closely related but distinct concepts. VASPs represent a broader category encompassing various virtual asset services, while VATPs specifically refer to centralised trading platforms for virtual assets.

Under the current regulatory framework, all centralised VATPs operating in Hong Kong or actively marketing their services to Hong Kong investors must obtain a license from the Securities and Futures Commission (SFC), regardless of whether they trade security tokens or non-security tokens.

Source of image: Edited from Freepik

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