XRP Left off Hong Kong’s Crypto Regulatory List for 2025

As XRP experiences significant growth, receiving attention from global regulators and initiatives aimed at increasing its adoption—including a potential Grayscale XRP ETF and CME XRP futures—concerns have emerged regarding its regulatory status in Hong Kong.

On January 27, 2025, Hong Kong’s Securities and Futures Commission (SFC) granted licenses to two local exchanges, PantherTrade and YAX, marking the first crypto trading licenses issued in the city this year. Currently, the SFC has approved only four cryptocurrencies for trading: Bitcoin, Ether, Avalanche, and Chainlink. The exclusion of Ripple’s XRP from this list raises important questions about its regulatory standing in the region. Despite XRP’s global popularity, it is not permitted for trading in Hong Kong.

The licensed exchanges in Hong Kong are subject to stringent regulations, including anti-money laundering (AML) and counter-terrorist financing (CTF) laws. To date, ten crypto exchanges have registered under these regulations, allowing them to operate virtual asset trading platforms in the territory. Initially, the SFC aimed to approve eleven crypto trading platforms by the end of 2024; however, this timeline has been pushed back due to thorough compliance checks. In December 2024, four virtual asset trading platforms received licenses, and regulators continue to collaborate closely with exchange executives to ensure adherence to financial standards.

The specific reasons for XRP’s exclusion from the approved list remain unclear, but it could be linked to Ripple’s ongoing legal challenges across various jurisdictions. The SFC has not offered an official explanation for this decision.