Hong Kong SFC Approves Victory Fintech as First Crypto License Since June 2025

Hong Kong's Securities and Futures Commission (SFC) has approved a crypto license for Victory Fintech on February 16, 2026. This marks the first such approval since June 2025, signaling a potential shift in the region's regulatory stance. The license allows Victory Fintech to operate as a virtual asset service provider under Hong Kong's stringent framework.

Victory Fintech License: Key Details

The SFC granted Victory Fintech a Type 1 license, enabling the firm to provide crypto trading services to retail and institutional clients. According to the SFC registry, the approval process took over 8 months, with Victory Fintech submitting its application in May 2025. The company, led by CEO Raymond Chan, plans to launch its platform by Q2 2026. This rollout will include support for major cryptocurrencies like Bitcoin and Ethereum.

Why This Approval Matters

Hong Kong's crypto regulatory framework, tightened in 2023, has limited the number of licensed operators to just 3 as of February 2026, per SFC data. Victory Fintech's approval addresses the market's need for regulated platforms amid growing retail interest, with over 12% of Hong Kong residents owning digital assets per a 2025 survey. This license positions Victory as a competitor to existing players like HashKey Exchange. For users, it promises enhanced security and compliance with local anti-money laundering (AML) standards.

Market Response and Future Outlook

While Victory Fintech is not publicly traded and lacks a native token, the news has boosted sentiment in Hong Kong's crypto sector, with Bitcoin trading up 2.3% at $62,450 on February 16, 2026, per CoinGecko. Community feedback on social platforms highlights optimism about more approvals, with over 500 mentions of Victory Fintech on X within 24 hours. The SFC is reportedly reviewing 11 additional applications, potentially increasing licensed firms by 30% by end of 2026. For broader context on regulatory trends, check Governance News.

Broader Implications for Hong Kong's Crypto Ecosystem

This development aligns with Hong Kong's ambition to become a global crypto hub, targeting a $5 billion virtual asset market by 2030, as outlined in a 2024 government report. Victory Fintech plans to integrate with Ethereum-based DeFi protocols for liquidity, a move that could bridge traditional finance and decentralized systems. For more on DeFi innovations, explore DeFi News. Additional insights on blockchain infrastructure can be found at Ethereum.org.

Challenges and Next Steps

Despite the milestone, Victory Fintech faces hurdles, including compliance costs estimated at $1.2 million annually by industry analysts. The SFC mandates strict reporting, with penalties of up to HKD 5 million for non-compliance, as per 2023 regulations. The firm aims to onboard 50,000 users by Q4 2026, a target dependent on marketing and user trust. Further data on market dynamics is available at CoinMarketCap.