The global financial landscape is rapidly embracing digital transformation, and cryptocurrencies are at the forefront of this revolution. With blockchain technology maturing and adoption increasing worldwide, more investors in Hong Kong are exploring how to enter the crypto market. Since June 2023, Hong Kong has implemented a formal licensing regime for virtual asset trading platforms (VATPs) under the Securities and Futures Commission (SFC), ensuring only compliant platforms can operate locally. This regulatory clarity has made it safer and easier than ever for retail investors to buy Bitcoin and other digital assets.
But with multiple licensed options available, which platform is best suited for Hong Kong users? Whether you're a beginner or an experienced investor, choosing the right exchange involves evaluating security, fees, user experience, regulatory compliance, and ease of depositing and withdrawing funds. In this comprehensive 2025 guide, we’ll compare top SFC-licensed platforms—focusing on Victory Securities and OSL—to help you make an informed decision.
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What Is a Cryptocurrency Exchange?
A cryptocurrency exchange is an online platform that acts as a bridge between traditional fiat currencies (like HKD or USD) and digital assets such as Bitcoin (BTC) and Ethereum (ETH). These platforms allow users to buy, sell, and trade various cryptocurrencies using features like spot trading, limit orders, and margin trading.
Beyond basic trading, many exchanges offer additional services such as:
- Secure digital wallets for storing crypto
- Staking and lending programs
- Over-the-counter (OTC) trading for large transactions
- Institutional-grade custody solutions
Thanks to Hong Kong’s progressive regulatory framework, only SFC-licensed platforms like OSL, Victory Securities, and Hashkey Exchange are legally permitted to serve local investors. This ensures a higher standard of transparency, investor protection, and operational integrity.
How to Buy Bitcoin in Hong Kong: Two Main Options
Hong Kong residents have two primary ways to gain exposure to Bitcoin:
- Direct Purchase of Cryptocurrencies
Buy actual Bitcoin or Ethereum through a licensed crypto exchange. This gives full control over your assets and allows participation in the broader Web3 ecosystem. - Invest in Bitcoin ETFs or Ethereum ETFs
Access crypto price movements through exchange-traded funds traded on traditional stock exchanges. Ideal for conservative investors who prefer regulated financial instruments without managing private keys.
While ETFs offer simplicity, direct ownership provides greater flexibility, potential staking rewards, and long-term growth opportunities.
6 Key Criteria for Choosing a Crypto Exchange in Hong Kong
When evaluating platforms, consider these six essential factors:
- Security & Asset Protection
Look for cold storage, two-factor authentication (2FA), and insurance coverage. - Transaction Fees
Lower fees mean more of your returns stay in your pocket—especially important for frequent traders. - Trading Features
Does the platform support spot trading, OTC deals, or advanced order types? - HKD/USD Deposit & Withdrawal Options
Seamless banking integration via FPS (Faster Payment System) or wire transfer is crucial. - User Interface & Localized Experience
A clean, intuitive interface with Cantonese/English support enhances usability. - Regulatory Compliance
Only use SFC-licensed platforms to ensure legal protection and fund safety.
Among the few platforms meeting all these standards, Victory Securities and OSL stand out as top choices for Hong Kong investors.
Platform Spotlight: Victory Securities
For investors seeking low-cost access to crypto within a regulated environment, Victory Securities is a compelling option. As Hong Kong’s first licensed broker offering integrated stock and cryptocurrency trading, it enables seamless portfolio management across traditional and digital assets.
Key advantages include:
- 0.2% trading fee – lower than HashKey (0.29%) and OSL (0.3%)
- As low as HK$7 minimum investment – ideal for beginners testing the market
- Dual account functionality: Trade stocks and crypto in one app ("VictoryX")
- Regulated under SFC Types 1 (Dealing in Securities), 4 (Advisory), and 9 (Asset Management)
Compared to competitors like Futu (0.08% min HK$15 fee) or HashKey, Victory offers better cost efficiency for small-to-mid-sized trades.
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Victory Securities: 3-Step Account Opening Process
- Identity Verification: Complete KYC by uploading ID documents.
- Bank Verification: Deposit HK$10,000 into your account (required by SFC regulations; can be withdrawn later).
- Begin Trading: Download the VictoryX app and start buying BTC, ETH, and more.
Platform Spotlight: OSL
As the first SFC-licensed digital asset exchange in Hong Kong (granted Type 1 and Type 7 licenses in 2020), OSL has established itself as a leader in institutional-grade security and compliance.
Owned by BC Technology Group (HKG:0863), a publicly listed company audited annually by one of the Big Four accounting firms, OSL offers unmatched transparency compared to private offshore exchanges.
Why choose OSL?
- Bank-level security with cold wallet storage and multi-signature protocols
- Supports high-volume OTC trading for institutional clients
- Full regulatory oversight with a proven track record since 2020
- Trusted by professional traders and long-term holders
Though its 0.3% trading fee is slightly higher than Victory’s, OSL excels in security and stability, making it ideal for investors prioritizing asset protection over marginal fee savings.
OSL: 3-Step Account Opening Process
- Register & Verify: Sign up via email and submit identity documents.
- Complete KYC: Deposit HK$10,000 for verification (standard SFC requirement).
- Start Trading: Use the OSL mobile app to manage your portfolio securely.
When to Choose Victory Securities vs OSL?
| Use Case | Recommended Platform |
|---|---|
| Frequent trading with low capital | ✅ Victory Securities |
| Long-term holding & maximum security | ✅ OSL |
| Integrated stock + crypto investing | ✅ Victory Securities |
| High-value OTC transactions | ✅ OSL |
If you're focused on minimizing transaction costs and want flexible access starting from just HK$7, Victory Securities is your best bet. But if you're allocating crypto as part of a long-term wealth strategy and value ironclad security and regulatory depth, OSL is the superior choice.
Funding & Withdrawal Guide
Victory Securities
- Deposit Methods: FPS, bank transfer, or crypto transfer
Withdrawal Process:
- Open VictoryX app → Go to "Trade" → "Withdraw Funds"
- Enter amount and bank details → Submit request
Typically processed within 1–2 business days.
OSL
- Deposit Methods: FPS, wire transfer, or direct crypto deposit
Withdrawal Process:
- Select currency (HKD/USD) → Enter amount
- Confirm bank details → Submit
Local withdrawals take 1–2 days; international may take up to 3.
Crypto deposits work similarly on both platforms—simply copy your unique wallet address from the app and send funds from your external wallet.
Frequently Asked Questions (FAQ)
Q: Are cryptocurrency exchanges legal in Hong Kong?
A: Yes—since June 1, 2023, only SFC-licensed platforms like Victory Securities and OSL can legally operate in Hong Kong. Using unlicensed exchanges may expose users to legal and financial risks.
Q: Is my crypto safe on these platforms?
A: Both Victory Securities and OSL implement robust security measures including cold storage, encryption, and regular audits. However, always enable 2FA and avoid sharing login credentials.
Q: Can I buy Bitcoin with Hong Kong dollars?
A: Absolutely. Both platforms support HKD deposits via FPS or bank transfer, allowing direct purchase of BTC and ETH.
Q: Do I need to pay taxes on crypto gains in Hong Kong?
A: Currently, Hong Kong does not impose capital gains tax on individual crypto investments. However, tax rules may vary for businesses or frequent traders—consult a professional if needed.
Q: What happens after I deposit HK$10,000 for verification?
A: The deposit satisfies SFC requirements but isn't locked in—you can withdraw it after completing KYC verification.
Q: Can I transfer my crypto to an external wallet?
A: Yes. Both platforms allow withdrawals to personal wallets via blockchain networks like Ethereum or Bitcoin.
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