Best Crypto Exchanges in Hong Kong

Best Cryptocurrency Exchanges in Hong Kong

After evaluating more than 20 cryptocurrency platforms, we have identified the top choices for investors in Hong Kong. Our evaluation focused on compliance with the Securities and Futures Commission (SFC), a wide selection of cryptocurrencies, easy-to-use interfaces, HKD deposit options, and reasonable transaction fees. Here is our concise, well-researched list of the top five cryptocurrency trading platforms for Hong Kong investors:

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1. Bybit

Bybit stands as Hong Kong's leading cryptocurrency exchange, tailored to meet the needs of local traders. It offers over 1,100 digital currencies within a secure, regulatory-compliant environment. Bybit makes it easy to enter the digital asset market by supporting local payment methods like FPS (Faster Payment Service), JKOPAY, and more.

The platform provides a range of trading options, including numerous cryptocurrencies, staking, and futures trading with up to 100x leverage, supported by strong liquidity. Bybit attracts a broad spectrum of investors with its low fees, charging 0.01% for makers and 0.06% for takers. It has a daily trading volume exceeding $30 billion and serves over 20 million users globally.

• Fees: Maker fee of 0.01% and taker fee of 0.06%.
• Supported Cryptocurrencies: Over 1,100 digital assets.
• Regulation & Licensing: Compliant with relevant Asian market regulations and operates in Hong Kong.
• HKD Deposit Methods: Bank transfers, FPS, PayMe, credit/debit cards, and various e-payment options.

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2. OKX

OKX leads Hong Kong's cryptocurrency market as the best exchange, being the only fully licensed platform by the Securities and Futures Commission (SFC). It offers a flexible and liquid trading environment for major assets like Bitcoin, Ethereum, Tether USDT, and USDC. With over 300 high-quality cryptocurrencies, OKX serves as a comprehensive financial hub for investors.

A standout feature of OKX is its robust DeFi ecosystem, powered by the OKT Chain, which provides functions similar to Binance's BNB Chain. This enables profitable DeFi investment opportunities, attracting experienced traders. OKX also supports various trading options, including spot, margin, futures, and options trading, as well as an active NFT marketplace and efficient DeFi portfolio management tools.

• Fees: Free HKD deposits and a competitive 0.08% fee for spot trading.
• Supported Cryptocurrencies: Over 300 digital assets, including stablecoins.
• Regulation & Licensing: Fully licensed by the SFC, compliant with its regulatory framework.
• HKD Deposit Methods: Bank transfers, FPS, credit cards, debit cards, and more.

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3. Kraken

Kraken ranks third among Hong Kong's top cryptocurrency exchanges, known for its high liquidity and significant trading volumes that cater to both institutional and retail investors. With a quarterly trading volume exceeding $207 billion, Kraken offers over 200 assets for trading and staking, including Bitcoin, Ethereum, Solana, and emerging tokens.

Kraken's mobile apps are highly rated on the App Store and Google Play, ensuring a seamless trading experience. The platform's staking service, providing returns up to 25% APY, adds to its appeal. Kraken Pro, tailored for advanced and institutional investors, features tight spreads, deep liquidity, and flexible deposit limits, solidifying Kraken as a reliable trading platform.

• Fees: Maker fees at 0.01% and taker fees at 0.02%.
• Supported Assets: Over 200 spot trading options and 100+ margin trading options.
• Regulation and Licensing: Adheres to high security standards with proof of reserves.
• HKD Deposit Methods: Supports USD deposits via major Hong Kong banks, including bank transfers and wires.

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4. Binance

Binance ranks fourth among Hong Kong's cryptocurrency exchanges and is globally recognized with over 100 million users in 130 countries. It offers a wide array of features, including spot, margin, futures, options, staking, IDOs, and lending, supporting more than 350 cryptocurrencies. In Hong Kong, Binance stands out with multilingual customer support, including Cantonese, and efficient HKD deposit methods via various local banks and payment systems.

Binance's comprehensive suite of tools and services positions it as a central hub for a holistic crypto trading experience. The platform provides competitive fees, charging 0.1% for spot trades and 0.06% for derivatives, making it an attractive option for investors. With its extensive range of services and user-friendly approach, Binance continues to be a preferred choice for many in the Hong Kong crypto market.

• Fees: 0.1% for spot trades and 0.06% for derivatives.
• Supported Assets: Over 350 cryptocurrencies.
• Regulation & Licensing: In the process of applying for an SFC license but available in Hong Kong.
• HKD Deposit Methods: Bank transfers, credit/debit cards, and more.

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5. Gate.io

Gate.io is the fifth-best cryptocurrency exchange in Hong Kong, known for its extensive selection of altcoins. With over 1,700 crypto assets, it caters to enthusiasts exploring a wide array of digital currencies. In Hong Kong's competitive market, Gate.io stands out with its attractive fee model, offering spot trades starting at 0.1%.

With a daily trading volume exceeding $5 billion and a global user base of 14 million, Gate.io has a significant international presence. It enhances the trading experience with features like automated bots and a unique startup section, providing Hong Kong traders with diverse and engaging market activities, including trading events and competitions.

• Fees: Maker fees at 0.1% and taker fees at 0.2%.
• Supported Cryptocurrencies: Over 1,700 digital currencies.
• Regulation & Licensing: Based in the Seychelles, accessible to Hong Kong users without local licensing.
• HKD Deposit Methods: Includes bank transfers, credit/debit cards, and PayPal.

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Is Crypto Regulated in Hong Kong?

Yes, cryptocurrency is regulated in Hong Kong. The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) are the primary regulatory authorities overseeing cryptocurrency activities.

Since 2018, the SFC has implemented licensing regimes for virtual asset (VA) portfolio managers and virtual asset service providers (VASPs). The SFC’s jurisdiction also includes virtual asset trading platform operators (VATPs) engaged in electronic trading and holding client assets. In 2022 and 2023, the HKMA broadened its regulatory framework to encompass various VA-related activities, particularly focusing on the governance and issuance of stablecoins.

In Hong Kong, cryptocurrencies are categorized as virtual assets and are not recognized as legal tender. The legal framework is defined by Hong Kong law and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). This framework covers various digital tokens, including utility tokens and stablecoins, but excludes digital representations of fiat currencies issued by central banks.

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How is Crypto Taxed in Hong Kong?

In Hong Kong, cryptocurrency taxation is guided by the Inland Revenue Department's Departmental Interpretation and Practice Notes No. 39 (DIPN 39), issued in March 2020.

The tax treatment varies based on the type of digital asset. Security tokens are generally regarded as capital assets and are not subject to tax. Utility tokens, however, may be taxable if they are sourced in Hong Kong. Cryptocurrencies held for long-term investment purposes are typically not taxed as capital gains. Cryptocurrency received as employment income is taxed based on its market value at the time of receipt.

DIPN 39 does not cover areas such as decentralized finance (DeFi), staking, and non-fungible tokens (NFTs). The Unified Fund Exemption regime usually excludes digital assets from being classified as qualifying securities. Additionally, cryptocurrency is not included in tax provisions for virtual asset borrowing and lending, as it is not considered "stock" or "money" under Hong Kong tax law.

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Bottom Line

In Hong Kong, the safest way to invest in Bitcoin and other cryptocurrencies is through local exchanges regulated by the Securities and Futures Commission (SFC) and holding a Virtual Asset Service Provider (VASP) license. These exchanges offer secure, legal methods for buying crypto assets and support HKD deposits via bank transfers, credit and debit cards, and the Faster Payment System (FPS).

Our thorough evaluation identified Bybit, OKX, Kraken, Binance, and Gate.io as the top five exchanges for beginners in Hong Kong's crypto market. Each platform offers unique advantages, including extensive asset selection, low fees, strong security, and user-friendly interfaces, ensuring a reliable and diverse trading experience for investors.