By Anjali Kochhar
Ripple’s XRP has been noticeably absent from the list of cryptocurrencies approved by Hong Kong’s Securities and Futures Commission (SFC). On January 27, 2025, the SFC issued licenses to two local exchanges, PantherTrade and YAX, marking the first crypto trading licenses of the year. However, only Bitcoin, Ether, Avalanche, and Chainlink were included on the list, leaving XRP out. This omission has raised concerns about the regulatory outlook for XRP in the region, despite its widespread global adoption.
Licensed exchanges in Hong Kong must comply with stringent regulations, including anti-money laundering (AML) and counter-terrorist financing (CTF) laws. So far, 10 crypto exchanges have registered under these regulations and are authorized to operate in the region. While the SFC had planned to approve 11 platforms by the end of 2024, the process was delayed due to rigorous compliance checks. Although the SFC granted licenses to four virtual asset trading platforms in December, the reason for XRP’s exclusion from the list remains unclear. Ripple’s ongoing legal issues in multiple countries might be a contributing factor, but the SFC has not provided any official statement regarding the decision.
Despite the regulatory challenges in Hong Kong, Ripple continues to pursue broader adoption of XRP. The company is actively working on launching a Grayscale XRP ETF and has been in talks with the Chicago Mercantile Exchange (CME) about XRP futures contracts. These initiatives aim to integrate XRP into traditional financial markets, which could provide a significant boost to its liquidity and market acceptance.
Hong Kong’s regulatory approach to cryptocurrencies has been cautious, focusing heavily on ensuring compliance with AML and CTF laws. The exclusion of XRP could be a result of concerns over Ripple’s legal battles or its alignment with Hong Kong’s strict financial standards. While Hong Kong remains a global crypto hub, the decision could limit XRP’s presence in the region, affecting its trading and liquidity on licensed platforms.
The omission of XRP from the approved list could have significant implications for its prospects in Hong Kong. Investors and traders may find it difficult to access XRP on licensed platforms, potentially impacting its price stability and adoption. Ripple’s efforts to engage with Hong Kong regulators and ensure compliance will be critical in determining XRP’s future in the region.
Even while Ripple is still working to broaden XRP’s appeal internationally, the fact that it is not on Hong Kong’s list of authorized cryptocurrencies emphasises the continuous regulatory obstacles it must overcome. Determining XRP’s potential in the area will largely depend on how well the company overcomes these obstacles. In order to comprehend how legislative changes can impact XRP’s standing in the global cryptocurrency market, stakeholders will need to keep a careful eye on future events.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.