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Surge in Hong Kong Crypto License Applications from Mainland-Linked BrokersTwo new platforms with mainland China links are preparing to apply for retail trading licenses in Hong Kong, with several others believed to be interested in following suit.According to a report published by Nikkei Asia earlier this week, the platforms, Yax and PantherTrade, have connections to mainland online securities brokers. PantherTrade is reportedly associated with Futu, a company which in turn is backed by Chinese tech giant Tencent, one of China’s largest technology companies. Yax, an emerging player in the crypto sector, has strong links to UP Fintech Holding, a Beijing-headquartered firm more commonly known as Tiger Brokers.Photo by Kanchanara on UnsplashCapital flight concernsThese connections are significant, given the previous involvement of these brokers in helping mainland Chinese customers invest in offshore assets, primarily US stocks. The firms have previously attracted the attention of China’s financial regulators. A notice from the Chinese securities watchdog in December last year compelled them to cease their “illegal cross-border business” activities.While crypto trading is banned in mainland China, an investigative report by the Wall Street Journal in August suggested that global exchange Binance was thriving in China despite the ban. Actions taken by the Chinese authorities are demonstrative of some level of concern with regard to crypto trading and potential capital flight through crypto.VASP licensingThe move by Yax and PantherTrade signals their intention to apply for a virtual asset service platform (VASP) license in Hong Kong, which would enable them to operate cryptocurrency exchanges for retail customers.Currently, both platforms are undergoing third-party assessments, a mandatory step preceding their formal application to the Securities and Futures Commission (SFC). The timeline for their applications remains uncertain.Broader interestThe growing interest in VASP licenses is not unique to Yax and PantherTrade. At least four other exchange platforms, similarly linked to mainland China, have also sought the same license, highlighting the eagerness of various players to enter the Hong Kong market. OneDegree, the sole licensed insurer for digital assets in Asia, has observed a significant uptick in license applications, including applications from traditional financial institutions, reflecting a positive trend toward educating the mass market.The SFC’s recent decision to make license application information public is an attempt to enhance transparency, following a scandal related to Dubai-headquartered crypto exchange JPEX in which over HK$1.5 billion (approximately $190 million) in virtual assets reportedly disappeared from the exchange.Currently, only two cryptocurrency exchanges, OSL and Hashkey, have received SFC approval. Others, including online brokers, have considered applying for licenses since late last year but are awaiting greater regulatory clarity before taking the plunge.Hong Kong, under the “one country, two systems” framework, has established itself as a hub for legal retail trading of cryptocurrencies. This development may signify a shift in China’s stance on digital assets and its increasing openness to crypto initiatives, as noted recently by blockchain data provider Chainalysis.

Cryptocurrency exchange Bybit has reinstated access to its mobile app for users in India via Apple’s App Store and Google Play, saying website access has been restored following regulatory steps taken earlier this year. The company said it registered with the Financial Intelligence Unit–India (FIU-IND) in January 2025 and re-enabled trading functions for eligible users on Feb. 25, with full app access announced on Sept. 8.Photo by appshunter.io on UnsplashPenalty and registration paved way for Bybit’s comebackThe return follows an enforcement action at the start of the year. On Jan. 31, FIU-IND imposed a penalty of 92.7 million Indian rupees (approximately $1.05 million) on Bybit for violations under India’s anti-money laundering law and said its website had been blocked under the Information Technology Act until compliance was achieved. The following month Bybit announced it had paid the penalty and completed its FIU registration. Bybit’s latest announcement comes against the backdrop of India’s cautious approach to sector-wide rules. A government document reviewed by Reuters indicates New Delhi is distancing itself from a comprehensive cryptocurrency law, citing the Reserve Bank of India’s view that regulation could confer “legitimacy” and elevate systemic risks, while an outright ban would not stop peer-to-peer or decentralized exchange activity. India does not have a comprehensive crypto law but applies a flat 30% tax on income from transfers of virtual digital assets (VDAs) and a 1% tax deducted at source (TDS) on consideration paid for VDA transfers under section 194S of the Income-tax Act. Platforms bet on India despite tighter oversightIt's worth noting that authorities had moved to bring offshore platforms within local oversight. FIU-IND issued show-cause notices to nine foreign exchanges (Bitfinex, Bittrex, Binance, Bitstamp, Gate.io, Huobi, Kraken, KuCoin and MEXC Global) in December 2023 and sought to block access to non-compliant services. App store removals of several offshore exchange apps occurred in January 2024 following the notices. Binance later registered with FIU-IND as a reporting entity after paying a fine of 188.2 million Indian rupees (about $2.14 million) for earlier violations, imposed in June 2024. KuCoin also registered, with a smaller penalty of $41,000. In March 2025, Coinbase joined the list by gaining clearance from the Indian financial regulator, announcing plans to launch offerings for retail customers in the country later this year, with other products to follow. Their rush to establish a foothold makes sense, as India topped the Chainalysis Global Crypto Adoption Index, underscoring the country’s widespread embrace of digital assets. Bybit’s re-entry follows a major security incident unrelated to India’s rules. In February, the exchange reported a theft of roughly $1.5 billion in Ethereum (ETH), which the U.S. Federal Bureau of Investigation later attributed to North Korean actors known as “TraderTraitor.” Shortly after the incident, Bybit CEO Ben Zhou said the exchange had replenished the gap in the ETH reserves. 

Wintermute Asia executes inaugural options block trade via CMEWintermute Asia Pte. Ltd, the digital asset derivatives trading arm of the well-known algorithmic trading firm and crypto market maker Wintermute Group, has successfully executed its first options block trade through the CME Group.The BTC/USD block trade was conducted in collaboration with U.K.-based liquidity and data solutions specialist TP ICAP. It was successfully cleared by ABN AMRO, marking a significant milestone for Wintermute Asia in the digital assets space.Photo by Kanchanara on UnsplashMeeting institutional investor needsInstitutional interest in secure and alternative avenues for exposure to digital assets continues to build momentum. It’s likely with that in mind that Wintermute Asia is strategically expanding its derivatives product offerings with this latest move. It’s also no surprise that Wintermute’s Singapore-based team was involved in this development, given a recent expansion of its Singapore base and the fact that its derivatives business is dealt with in Singapore.Presently, Wintermute Asia provides vanilla options in BTC, ETH and various altcoins, featuring expiration periods ranging from 1 day to 6 months. The platform also caters to more sophisticated needs with the inclusion of exotic options.Evgeny Gaevoy, CEO of Wintermute Group, expressed enthusiasm about Wintermute Asia’s evolving product offering, stating:“Wintermute Asia is excited to offer a range of OTC derivatives solutions to our counterparties that can accommodate all of their trading needs. Our growing suite of derivative instruments allows investors to easily hedge and manage risks, generate yield, and gain synthetic exposure to the underlying digital assets.”The move towards facilitating options block trades aligns with the increasing diversification of institutional portfolios into the digital asset sector. Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, emphasized the significance of the partnership with Wintermute Asia. He commented:“We are pleased to provide Wintermute and its counterparties with access to our highly liquid, regulated suite of benchmark cryptocurrency futures and options on bitcoin and ether.”Involving TradFi heavyweightsCME is a cornerstone TradFi financial derivatives exchange, first established in 1898 and headquartered in Chicago in the United States. Its CEO Terry Duffy pushed back against proposals from convicted fraudster and FTX Founder Sam Bankman Fried in 2022 to alter the futures clearing model on the basis that such a move would introduce significant risk into the financial system. A year on from the failure of FTX and many other crypto platforms, a move towards involving established TradFi firms like CME, as Wintermute is doing, is far more appealing to institutional investors.Sam Newman, Digital Assets Head of Broking at TP ICAP, acknowledged Wintermute as another participant in block trading CME Group cryptocurrency products. TP ICAP, a key player in digital asset broking services since 2020, has been instrumental in price discovery and liquidity through global coverage on regulated exchanges. Newman expressed excitement about witnessing crypto-native firms like Wintermute accessing traditional products and services, indicating the market’s maturation.Earlier this year, CME Group upgraded its BrokerTec Stream from version 1.5 to 2.0. The upgrade aims to enhance performance and reduce latency for clients, introducing features such as sweepable matching and firm price improvements. Recently, CME became the second largest bitcoin futures exchange, second only to global crypto exchange Binance.