Bullish Group Becomes Hong Kong's 10th Licensed Crypto Exchange as SFC Unveils New OTC Trading Rules

Bullish Group, which owns crypto news site CoinDesk, became the 10th licensed exchange in Hong Kong. The approval comes as Hong Kong is widening the avenues for investors to trade virtual assets.

Crypto news site CoinDesk’s parent company, Bullish Group, has become the 10th licensed exchange in Hong Kong.

The approval comes as the city is expanding the avenues for investors to trade virtual assets, with its financial regulator announcing new licensing rules for over-the-counter (OTC) crypto trading and custody services.

The Securities and Futures Commission (SFC) said Wednesday that the changes are aimed at ensuring market efficiency and enhancing investor protection.

The regulator is also considering derivative trading and margin financing options for virtual assets. The measures were unveiled by SFC CEO Julia Leung at the Consensus Hong Kong 2025 conference, which saw industry leaders discussing the city's role in the crypto sector.

Hong Kong has been positioning itself as a digital asset trading hub since 2022, a move that followed China’s sweeping ban on cryptocurrency transactions in the mainland. The city has since launched Asia’s first spot crypto exchange-traded funds (ETFs) and granted nine virtual asset trading platform (VATP) licenses, according to Financial Secretary Paul Chan.

The government is also advancing stablecoin regulations, with legislation already introduced to support further industry progress. “These initiatives reflect our effort to build a thriving digital asset ecosystem,” Chan said.

Hong Kong’s crypto push is being closely watched, with some viewing it as a testbed for Beijing’s approach to virtual assets.

IDA CEO Lawrence Chu has described the city’s role as a sandbox for China, offering a controlled environment for digital asset experimentation while acting as a bridge for broader market activity.

Hong Kong’s government is also stepping up efforts to attract crypto investors, announcing plans to expand existing tax breaks for privately offered funds and family offices to include crypto investments.

The SFC is currently assessing several more applications and expects a wave of new licensed exchanges in the coming months.

A total of 16 companies are awaiting decisions on their VATP applications, with 11 already operating as “deemed to be licensed,” despite the SFC advising caution against trading with them.

The SFC has completed its first round of on-site reviews of these crypto firms. SFC CEO Julia Leung confirmed that all VATPs adhering to the commission’s licensing model can expect their applications to be approved.