Hong Kong Securities and Futures Commission approves EX.IO over-the-counter trading business, further完善虚拟资产监管框架

The Hong Kong Securities and Futures Commission (SFC) has approved the licensed virtual asset trading platform EX.IO to conduct over-the-counter (OTC) virtual asset trading. This marks another development in Hong Kong’s virtual asset regulatory framework, indicating the market’s progression toward greater sophistication and institutionalization. The initial supported cryptocurrencies include mainstream digital assets such as BTC, ETH, USDT, USDC, USDT TRC20, as well as fiat currencies like USD and HKD. However, this service is only available to qualified investors.

Key Analysis of the Event

Approval Details Summary

The OTC virtual asset trading business approved for EX.IO has the following features:

What is OTC Virtual Asset Trading

OTC trading differs from exchange trading. Exchanges facilitate standardized matching transactions, whereas OTC involves peer-to-peer protocol trading. The advantages of this model include:

• Suitable for large-volume transactions without market impact
• Counterparties can negotiate prices and terms
• More flexible payment methods and settlement times
• Targeted at professional investors and institutional clients

Open only to “qualified investors” indicates that EX.IO’s OTC trading services are primarily aimed at professional investors and institutions, not retail investors. This approach aligns with Hong Kong’s virtual asset regulation—managing risks through investor segmentation.

Market Significance Analysis

Progress in Hong Kong’s Virtual Asset Regulatory Framework

Hong Kong’s SFC has adopted a gradual approach to regulating virtual assets. From approving licensed trading platforms to now authorizing OTC trading, this reflects:

• Gradual refinement of the regulatory framework
• Incremental opening of the virtual asset market
• Recognition of different trading methods

The approval of EX.IO’s OTC business demonstrates that Hong Kong regulators believe OTC trading can be acceptable within an appropriate risk control framework.

Strategic Significance for EX.IO

For EX.IO, approval of OTC trading means:

• Expansion of business scope to serve more client needs
• Enhanced competitiveness through differentiation among licensed platforms
• Diversification of revenue streams, as OTC typically involves higher service fees
• Increased attractiveness to institutional clients, satisfying large transaction demands

Future Focus

This approval may signal several developmental directions for Hong Kong’s virtual asset market:

• Other licensed platforms might also apply for similar OTC services
• The institutionalization of Hong Kong’s virtual asset market will further advance
• Convenience for large transactions and institutional participation will improve
• Related compliance requirements and risk management standards will become clearer

Summary

The approval of EX.IO’s OTC virtual asset trading signifies ongoing improvement of Hong Kong’s virtual asset regulatory framework. It not only opens new business opportunities for EX.IO but also injects vitality into Hong Kong’s virtual asset market. The introduction of OTC trading meets the needs of large-volume and professional investors, reflecting a balance between risk management and market openness by regulators. As more compliant businesses are approved, Hong Kong’s virtual asset market is expected to become more institutionalized and internationally competitive.