As XRP continues its climb, racking up nods from global regulators and initiatives to expand adoption including a potential Grayscale XRP ETF and CME XRP futures, a shadow of doubt is cast upon its regulatory standing in the Chinese special administrative region of Hong Kong.
Ripple’s XRP conspicuous for 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.
Notably, the SFC has only approved four cryptocurrencies for trading: Bitcoin, Ether, Avalanche, and Chainlink. The absence of Ripple’s XRP from this list raises questions about the regulatory stance of this particular cryptocurrency in the region. Despite its widespread global adoption, XRP is not currently permitted for trading in Hong Kong.
Strict regulations for exchanges including AML and CTF
Licensed exchanges in the region are required to comply with strict regulations, including anti-money laundering (AML) and counter-terrorist financing (CTF) laws. To date, 10 crypto exchanges have registered under these regulations and are permitted to operate virtual asset trading platforms in Hong Kong.
The SFC had initially planned to approve 11 crypto trading platforms by the end of 2024 but faced delays due to rigorous compliance checks. In December 2024, four virtual asset trading platforms were granted licenses, and regulators continue to work closely with exchange executives to ensure they 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. The SFC has not provided any official explanation for this decision.
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