Hong Kong Greenlights First Crypto Exchange in Eight Months as China Fintech Sector Navigates Regulatory Thaw

Hong Kong Greenlights First Crypto Exchange in Eight Months as China Fintech Sector Navigates Regulatory Thaw

Hong Kong's Securities and Futures Commission approved its first virtual asset trading platform license since June 2025, granting Victory Fintech (VDX) authorization to operate a cryptocurrency exchange in a signal that the city's cautious approach to digital assets may be easing.

The approval, announced during the Chinese New Year holiday period, comes as Hong Kong positions itself as a regulated crypto hub in contrast to mainland China's stricter stance. For finance leaders watching the region's digital asset infrastructure, the licensing represents a potential reopening of institutional pathways that have been largely frozen for eight months.

The regulatory development arrived alongside a more experimental proposal from a Hong Kong lawmaker to distribute the next round of government stimulus funds via stablecoin-based vouchers, though no implementation timeline was provided. The suggestion reflects growing official interest in blockchain-based payment rails, even as the broader stablecoin market shows signs of consolidation. Tether, the largest stablecoin issuer, discontinued support for its offshore Chinese Yuan stablecoin this week, citing limited demand for the product.

On the payments front, DBS Bank and TenPay Global launched a fee-free remittance service allowing Singapore customers to send money directly to Weixin Pay users in China through the DBS digibank app. The partnership eliminates traditional wire transfer fees for cross-border consumer payments, a notable cost reduction for the Singapore-China corridor.

Ant International, the global arm of Alibaba's financial services unit, announced a strategic partnership with Malaysia's CIMB Group to enhance cross-border payment solutions and digital liquidity management for businesses across the ASEAN region. Separately, Ant Digital Technologies established a regional hub in Malaysia for ZOLOZ, its AI-powered identity verification platform, targeting fraud prevention services for Southeast Asian businesses.

The week also brought fintech-sports sponsorship news with an unusual twist: the San Francisco Giants signed a multi-year deal naming Airwallex, the cross-border payments firm, as its official jersey patch sponsor and corporate expense management partner. The arrangement combines brand visibility with an operational software contract, reflecting how fintech firms are bundling marketing with enterprise sales.

In capital markets activity, Hong Kong-based stablecoin payments company RedotPay reportedly began exploring a U.S. initial public offering at a $4 billion valuation, according to reports citing unnamed sources. The company is said to be working with major banks to target a $1 billion raise, though no formal filing has been announced.

The flurry of activity during a traditional holiday period suggests China's fintech sector is operating under less regulatory uncertainty than in recent years, when authorities froze new licenses and forced major restructurings. Whether Hong Kong's renewed licensing activity signals a broader regional shift or remains an isolated development will become clearer as more applications move through the approval pipeline in coming months.