As XRP climbs the ranks, gaining recognition from regulators around the world and initiatives to increase adoption, including a possible Grayscale XRP Futures contract and CME XRP, a doubt has been cast on its legal standing in Hong Kong, a special administrative region within China.
Ripple XRP is conspicuous by its absence
On Jan 27, Hong Kong’s financial regulator, the Securities and Futures Commission (SFC) granted licenses to two local exchanges, PantherTrade and YAX, to operate in the city—the first crypto trading licenses issued in 2025.
SFC approved only four cryptos for trading, namely Bitcoin, Ether Avalanche Chainlink. The absence of Ripple’s XRP from this list raises questions about the regulatory stance of this particular cryptocurrency in the region. XRP, despite its global popularity, is currently not permitted to be traded in Hong Kong.
Exchanges must adhere to strict regulations, including AML/CTF.
Licensees of licensed exchanges are expected to adhere strictly to regulations including laws against money laundering (AML), counterterrorism financing (CTF), and other anti-terrorist funding (CTF). 10 crypto-exchanges registered so far under the regulations, and they are allowed to trade virtual assets in Hong Kong.
The SFC initially intended to approve 11 crypto-trading platforms by the year 2024, but delays were caused due to stringent compliance checks. The SFC granted four licenses for virtual assets trading platforms in December 2024. They continue to closely work with executives of exchanges to ensure the platforms meet financial standards.
The reason for excluding XRP from the approved list is unclear, but it may be related to Ripple’s ongoing legal issues in various countries. SFC did not provide any official reasons for the decision.
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