The world of virtual assets has evolved dramatically over the past decade. Centralized exchanges have captured the lion’s share of early market growth, with platforms like Binance propelling their founders into billionaire status almost overnight. Yet as digital assets gain mainstream traction and become a strategic pillar in global financial innovation, the era of unregulated trading is fading fast.
Decentralized exchanges (DEXs) like Uniswap and Curve are pushing the frontiers of permissionless finance, while regulated centralized platforms such as Coinbase, Kraken, OSL, and Hashkey are establishing compliance-first ecosystems. Nowhere is this shift more evident than in Hong Kong, where the Securities and Futures Commission (SFC) has accelerated its regulatory framework for virtual asset trading platforms (VATPs). In September 2023, the SFC revealed a shortlist of four VATP applicants: HKVAX, HKBitEX, HongKong BGE Limited, and VDX (Victory Fintech). These platforms—though still in the application phase—are already dubbed the “New Big Four” of Hong Kong crypto.
👉 Discover how these emerging platforms are shaping the future of compliant digital trading.
While retail access remains restricted to licensed operators, the long-term potential is undeniable. With Coinbase’s Nasdaq listing and a market cap exceeding $16 billion, Hong Kong’s compliant exchange race is heating up. This article dives deep into six key players—two already licensed, four in active application—comparing their business models, team strengths, capital backing, and strategic positioning.
OSL: Backed by BC Tech, Pioneering STO and Institutional Services
OSL traces its roots to 2018 as an internal project under the Hong Kong-listed "Brand China," which later rebranded to BC Technology Group (00863.HK). In December 2020, OSL secured Hong Kong’s first Type 1 (Securities Trading) and Type 7 (Automated Trading) licenses, serving institutional and professional investors across Asia. It later obtained Types 4 and 9 licenses, expanding into advisory and asset management.
A major milestone came on August 3, 2023, when OSL was approved to offer retail trading in Bitcoin and Ethereum. The retail launch event followed on August 24 at its Causeway Bay headquarters, marking a pivotal shift toward mass-market accessibility.
Business Innovation: Security Token Offerings (STO) and Global Partnerships
OSL has been at the forefront of Security Token Offerings (STO) in Asia. In July 2022, its parent company BCTG STO Limited issued a dollar-denominated bond via STO—the first of its kind in Hong Kong. Partners included Animoca Brands, United Financial Group, and Volmart. Although STO adoption remains limited due to investor scarcity, OSL continues to push boundaries. On September 12, 2023, it announced a strategic collaboration with Harvest Global Asset Management to expand STO infrastructure.
Beyond STO, OSL has built a robust network of global partnerships:
- Allaria Technology (Latin America): Provides digital asset custody and liquidity solutions for institutions.
- Interactive Brokers (IBKR): Appointed OSL Digital Securities as its exclusive virtual asset service provider in Hong Kong.
- Victory Securities: Collaborates on trade execution and settlement services.
OSL is also expanding beyond Hong Kong. On September 22, 2023, BC Tech announced that OSL Singapore (OSLSG) would apply for a license from the Monetary Authority of Singapore (MAS).
Capital Strength: Institutional Backing from Fidelity and GIC
As a subsidiary of a public company, OSL enjoys low-cost capital access. Key funding milestones:
- January 2021: Raised $90 million through a rights issue.
- Two placements with Fidelity International: Secured $20 million.
- June 2021: GIC (Singapore’s sovereign wealth fund) invested HK$543 million (~$70 million) at HK$17 per share.
These investments not only validate OSL’s compliance model but also position it as one of the most financially secure platforms in the region.
Team Expertise: Finance Veterans with Web3 Vision
OSL’s leadership combines traditional finance pedigree with blockchain experience. The controlling shareholder, Kao Chen-shun (“Shell King” of Hong Kong markets), brings deep capital market insight. The executive team includes alumni from HSBC, Credit Suisse, Barclays, and Accenture, ensuring strong regulatory navigation and operational rigor.
With its well-funded structure and institutional-first strategy, OSL is poised to lead in compliant institutional trading and tokenized asset innovation.
Hashkey Exchange: Ethereum’s Early Champion with Broad Ecosystem Ambitions
Hashkey Exchange operates under Hashkey Group, founded by Dr. Xiao Feng—a pivotal figure in China’s blockchain evolution. As one of the earliest supporters of Ethereum and organizer of the renowned Wanxiang Blockchain Summit, Dr. Xiao has shaped Web3 thought leadership in Asia for nearly a decade.
Hashkey represents a distinct Shanghai-rooted ethos: international-facing, technically grounded, and strategically patient—contrasting with Beijing’s earlier focus on centralized exchanges and media.
Leadership: Web3 Veterans from Huobi and Alibaba
Key executives bring top-tier experience:
- Dr. Xiao Feng: Former Vice Chairman of Wanxiang Holdings; funded Ethereum Foundation in 2015 with $500K.
- COO Weng Xiaoqi: Ex-Huobi Global CEO; joined after Hashkey acquired his Web3 gaming startup GameSpace.
- CCO Zhang Dayong: Ex-Alibaba/Lazada payments lead; previously managed Alipay’s Southeast Asia expansion.
- Hashkey Capital CEO Deng Chao: Oversees a fund managing over $1 billion AUM, with investments in Algorand, Injective Protocol, and DODO.
Business Model: One-Stop Web3 Infrastructure
Hashkey offers an integrated ecosystem:
- Exchange (B2B + B2C)
- Brokerage services
- Venture capital
- Web3 infrastructure
On August 28, Hashkey launched its retail app, enabling compliant trading outside restricted regions like mainland China. The platform aims to support spot ETFs under regulatory frameworks and may provide backend infrastructure for ETF issuers.
Funding Status: High Valuation, Ongoing Raise
While Hashkey has raised capital privately, its latest round remains incomplete. As of mid-2023, Bloomberg reported Hashkey seeking $100–200 million at a $1+ billion valuation—a challenging target amid market uncertainty.
Despite strong brand equity and investment success, Hashkey faces a critical test: transitioning from a respected investment firm to a highly regulated, operationally intensive exchange.
👉 See how platforms like Hashkey are bridging institutional finance with blockchain innovation.
HKVAX: Former Coinsuper Team with Mining Capital Ties
On August 11, HKVAX received in-principle approval from the SFC for Type 1 and Type 7 licenses—positioning it to become Hong Kong’s third licensed virtual asset exchange. Though final licensing may take another six months, HKVAX plans to launch spot trading and OTC services upon approval.
Core Offerings: Institutional Liquidity + Retail Protection
HKVAX targets both professional and retail clients with:
- Fiat-to-crypto trading (USD/HKD ↔ BTC/ETH/USDC)
- Institutional-grade trading platform
- Listing advisory for tokens
- Full asset protection via cold-hot wallet isolation
Leadership: Traditional Finance Meets Crypto Compliance
Founding team highlights:
- CEO Wu Weiliang: Former CEO of CoinSuper Premium; ex-Morgan Stanley, JPMorgan Chase
- COO Fok Siu-leung: Ex-HSBC AML compliance lead; focused on licensing strategy
- CTO Liu Cheng: Ex-Ant Financial; background in fintech system architecture
Their experience spans Wall Street, Asian wealth management, and prior crypto ventures—making them one of the most seasoned teams in the pipeline.
Backing: Alleged Mining and Entertainment Capital
While no official funding rounds have been disclosed, industry sources suggest HKVAX has support from a major Southwest China mining group and entertainment-sector investors. This blend could provide both technical infrastructure and marketing reach.
With formal operations expected around Q1 2024, HKVAX is well-positioned to capture demand from both institutional players and compliant retail users.
VDX: Victory Fintech’s Pure B2B Play
VDX (Victory Fintech Limited) is a subsidiary of Victory Securities, Hong Kong’s first local broker to obtain a virtual asset license (Types 1, 4, 9). While Victory Securities uses OSL’s backend to power its own retail app (launched August 24), VDX takes a different path.
Strategy: Exclusively B2B Liquidity & SaaS Solutions
Unlike peers serving both institutions and retail users, VDX focuses solely on B2B services, offering:
- Web3 SaaS solutions for financial institutions
- Liquidity provisioning
- Native Web3 fund infrastructure
- Direct crypto on/off ramps
This niche strategy aligns with global trends where exchanges handle liquidity while brokers serve end clients.
Team: Hybrid Finance + Web3 Talent
VDX blends expertise:
- CEO: Former high-frequency trader with 7 years in crypto
- COO: Ex-Deutsche Bank & Accenture; ex-SFC fintech expert
- ROs (Responsible Officers): From OSL and leading Web3 exchanges
- Chief Compliance Officer: Former OSL compliance lead
- Engineers from Tencent, Futu, Tiger Brokers
This hybrid team ensures regulatory alignment without sacrificing technical agility.
Funding: Early-Stage Backing from Top-Tier VCs
Since 2021, VDX has raised multiple rounds totaling several million dollars from U.S.-based Tier-1 venture funds—a rare achievement for a pre-license entity.
Despite being late to apply, VDX stands out through strategic clarity and strong institutional backing.
HKbitEX: Tykhe Capital’s STO-Focused Exchange
HKbitEX is part of Tykhe Capital Group, which structures its business around tokenized real-world assets (RWA). Other subsidiaries include Pioneer Asset Management (licensed fund manager) and Atom 8 (Web3 SaaS provider).
Leadership: Ex-HKEX Architects Driving Tokenization
Chairman Gao Han previously worked at the Hong Kong Stock Exchange (HKEX), contributing to programs like Stock Connect and Bond Connect. He recruited former HKEX colleagues—including Shi Lin, ex-co-head of listing supervision—to lead product development.
Innovation: PRINCE Token – Hong Kong’s First Real Estate STO
On September 10, 2023, Tykhe launched PRINCE Token, targeting a HK$100 million raise to acquire five retail properties in Prince Edward. Key features:
- Minimum investment: HK$1,000
- Returns from rental income + capital appreciation
- Designed for accredited investors
- Planned listing on HKbitEX for secondary liquidity
This initiative exemplifies how traditional finance can be reimagined through blockchain—democratizing access while maintaining compliance.
HK BGE: Healthcare Firm’s Web3 Experiment Led by Former Hashkey Exec
HK BGE is a wholly-owned subsidiary of HKE Holdings (01726.HK), a construction firm turned fintech aspirant. Founded in 2021, it represents a classic case of traditional business diversification into Web3.
Leadership Transition: From Hashkey Strategy to Exchange Leadership
In February 2023, it appointed Ouyang Jiannan—a founding member of Hashkey—as CEO. His background includes strategic planning and operations at Hashkey Digital Asset Group.
However, given Hashkey Exchange’s own operational challenges, questions remain about execution capability.
Capital Position: Public Market Backing with Entertainment Links?
Backed by a listed company, HK BGE has easier access to capital. Unconfirmed reports suggest ties to entertainment capital and possible family connections to offshore gaming figures—but nothing verified.
As a small-cap firm experimenting with Web3, HK BGE remains one to watch rather than a current frontrunner.
Comparative Summary: Who Will Lead Asia’s Compliant Crypto Future?
| Platform | Status | Focus Area | Key Strength |
|---|---|---|---|
| OSL | Licensed | STO + Institutional | Strong capital & global partners |
| Hashkey | Licensed | Ecosystem + ETFs | Brand power & VC arm |
| HKVAX | Applying | OTC + Retail | Experienced team |
| VDX | Applying | B2B Liquidity & SaaS | Niche focus |
| HKbitEX | Applying | RWA + Real Estate STO | HKEX pedigree |
| HK BGE | Applying | Experimental | Listed backing |
Frequently Asked Questions (FAQ)
Q1: Which virtual asset exchanges are currently licensed in Hong Kong?
A: As of late 2023, only OSL and Hashkey Exchange have full VATP licenses allowing retail trading.
Q2: Can mainland Chinese residents use Hong Kong crypto exchanges?
A: No. Due to regulatory restrictions, licensed platforms do not serve mainland retail customers directly.
Q3: What is an STO (Security Token Offering)?
A: An STO is a blockchain-based issuance of asset-backed securities (e.g., real estate or equity), compliant with financial regulations.
Q4: Why are so many new exchanges applying in Hong Kong?
A: Hong Kong offers a clear regulatory path for crypto businesses targeting institutional and Asian markets—a rare advantage in today’s global climate.
Q5: Will any Hong Kong exchange launch a spot Bitcoin ETF?
A: Hashkey has expressed interest in supporting ETFs; however, SFC approval remains pending as of early 2025.
Q6: How do VDX and OSL differ in their business models?
A: OSL serves both retail and institutional clients directly. VDX exclusively provides backend liquidity and SaaS tools to financial institutions—acting as an enabler rather than an end-user platform.
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