Best Crypto Exchanges in Hong Kong
Explore our top picks for the best crypto exchanges in Hong Kong, ensuring a smooth and safe entry into the world of cryptocurrency.
Summary: In Hong Kong, buying and trading Bitcoin and other cryptocurrencies is best done via a local exchange regulated by the Securities and Futures Commission (SFC) and holding a Virtual Asset Service Provider (VASP) license. These platforms offer lawful paths for investing in crypto assets and accept HKD through various means, such as bank transfers, debit and credit cards, and the Faster Payment System (FPS).
For newcomers to the crypto world in Hong Kong, we've scrutinized the top 5 trading platforms available. After thorough analysis, here are the most dependable choices:
Get the daily newsletter keeping 200,000 investors ahead of the market.
Best Cryptocurrency Exchanges in Hong Kong
In our detailed assessment of over 20 cryptocurrency platforms, we've identified the best ones for Hong Kong investors. Our criteria included compliance with the Securities and Futures Commission (SFC) of Hong Kong, a broad range of cryptocurrencies, user-friendly interfaces, Hong Kong Dollar (HKD) deposit methods, and fair transaction fees. Below is our concise, well-researched list of the top five cryptocurrency trading platforms.
1. Bybit
Bybit is Hong Kong's premier cryptocurrency exchange, seamlessly aligning with the specific needs of local traders. This platform boasts an impressive lineup of over 1,000 digital currencies, all within a secure, regulatory-compliant environment. It facilitates smooth entry into the digital asset ecosystem by integrating popular local payment methods such as FPS (Faster Payment Service), JKOPAY, and others, simplifying the investment process.
The platform offers various trading possibilities, from a vast selection of cryptocurrencies to staking and futures trading with up to 100x leverage, backed by strong liquidity. Bybit appeals to diverse investment preferences, thanks to its low fees, with 0.01% for makers and 0.06% for takers, a daily volume exceeding $30 billion, and a global user base of over 20 million, affirming its market dominance.
- Fees: Bybit has a maker fee of 0.01% and a taker fee of 0.06%.
- Supported Cryptocurrencies: Over 1,000 digital assets are available on Bybit.
- Regulation & Licensing: Compliant with relevant Asian market regulations and operates in Hong Kong.
- HKD Deposit Methods: Includes bank transfers, FPS, PayMe, credit/debit cards, and various e-payment options.
2. OKX
OKX takes the second spot on our list for Hong Kong's cryptocurrency scene, standing out for its flexibility and deep liquidity in leading assets like Bitcoin, Ethereum, and well-known stablecoins such as Tether USDT and USDC. With over 300 premium cryptocurrencies, OKX has grown into a comprehensive financial hub for investors.
A key feature of OKX is its dynamic DeFi ecosystem, anchored by the OKT Chain. This chain provides functions akin to Binance's BNB Chain, enabling lucrative DeFi investment opportunities that appeal to seasoned traders seeking higher gains. Besides, OKX presents a variety of trading possibilities, including spot, margin, futures, and options trading, alongside an active NFT marketplace and effective DeFi portfolio management tools.
- Fees: Complimentary HKD deposits and a competitive 0.08% fee for spot trading
- Supported Cryptocurrencies: A diverse selection of over 300 cryptocurrencies, including stablecoins
- Regulation & Licensing: OKX operates under a VASP license, compliant with the SFC's regulatory framework.
- HKD Deposit Methods: Options include Bank Transfer, FPS, Credit Card, Debit Card, among others.
3. Kraken
Kraken secures the third spot among Hong Kong's top cryptocurrency exchanges, distinguishing itself with exceptional liquidity and strong trading volumes that appeal to both institutional and retail investors. It reports a remarkable quarterly trading volume exceeding $207 billion, featuring over 200 assets for trading and staking, such as Bitcoin, Ethereum, and Solana, alongside rising tokens.
Kraken's user-friendly mobile apps are highly regarded in both the App Store and Google Play, reflecting its commitment to smooth trading experiences. Its staking service, offering returns up to 25% APY, enhances its allure. Kraken Pro, designed for the advanced and institutional investors, offers narrow spreads, deep liquidity, and adaptable deposit limits, reinforcing Kraken's status as a dependable trading platform.
- Fees: Competitive, with maker fees at 0.01% and taker fees at 0.02%.
- Supported Assets: A broad range with over 200 spot and 100+ margin trading options.
- Regulation and Licensing: Adheres to top security standards with proof of reserves.
- HKD Deposit Methods: Facilitates USD deposits through leading Hong Kong banks, supporting bank transfers and wires.
.webp)
4. Binance
Binance lands the fourth spot among Hong Kong's cryptocurrency exchanges, renowned as a pivotal global platform with over 100 million users across 130 countries. It provides an extensive array of trading modalities, including spot, margin, and futures trading for over 350 crypto assets, catering to a diverse trading community.
In Hong Kong, Binance distinguishes itself with multilingual customer support, including Cantonese, and streamlined HKD deposit processes via a variety of local banks and payment systems. Its significant local user base and solid regional footprint underscore Binance's reliability for Hong Kong traders. Known for its comprehensive suite of tools and services, Binance aims to be the hub for a holistic crypto trading journey.
- Fees: Offers competitive rates with 0.1% for spot trades and 0.06% for derivatives.
- Supported Assets: Boasts over 350 cryptocurrencies.
- Regulation & Licensing: Complies with Asian regulatory standards, ensuring availability for Hong Kong investors.
- HKD Deposit Methods: Provides multiple deposit options for Hong Kong users, including bank transfers and cards.
.webp)
5. Gate.io
Gate.io ranks as the fifth-best cryptocurrency exchange in Hong Kong, celebrated for its vast selection of altcoins. The platform features an impressive lineup of over 1,700 crypto assets, making it a go-to for enthusiasts keen on diving into the wide world of digital currencies. In the competitive Hong Kong crypto landscape, Gate.io attracts users with its appealing fee model, offering spot trades starting at a low 0.1%.
Boasting a daily trading volume over $5 billion and a global community of 14 million, Gate.io stands out on the world stage. It brings a personal touch to trading with features like automated bots and a unique startup section, providing Hong Kong traders with diverse, engaging market adventures, including trading events and competitions crafted for their eclectic tastes.
- Fees: Gate.io keeps it competitive with maker fees at 0.1% and taker fees at 0.2%.
- Supported Cryptocurrencies: Offers a robust selection of over 1,700 digital currencies.
- Regulation & Licensing: Operating from the Seychelles, Gate.io reaches Hong Kong users without direct local licensing.
- HKD Deposit Methods: Offers varied deposit options, including bank transfers, cards, and PayPal, among others.
Is Crypto Regulated in Hong Kong?
Yes, crypto is regulated in Hong Kong. The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) are the key regulatory bodies overseeing cryptocurrency activities.
Since 2018, the SFC has established licensing regimes for virtual asset (VA) portfolio managers and virtual asset service providers (VASPs), extending its jurisdiction to include virtual asset trading platform operators (VATPs) involved in electronic trading and holding client assets. In 2022 and 2023, the HKMA expanded its regulatory scope to cover various VA-related activities, with a significant focus on the governance and issuance of stablecoins.
Cryptocurrencies in Hong Kong are classified as virtual assets and are not considered legal tender. The legal framework, defined by Hong Kong law and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), includes various forms of digital tokens, such as utility tokens and stablecoins, but excludes digital representations of fiat currencies issued by central banks.
How is Crypto Taxed in Hong Kong?
In Hong Kong, cryptocurrency taxation follows the guidance of the Inland Revenue Department's DIPN 39, issued in March 2020.
The tax treatment depends on the type of digital asset: security tokens are typically considered capital and thus not subject to tax, while utility tokens may be taxable if sourced in Hong Kong. Cryptocurrencies held for long-term investment are generally not taxed as capital gains. Cryptocurrency received as employment income is taxed at market value.
Areas like decentralized finance (DeFi), staking, and non-fungible tokens (NFTs) are not covered by DIPN 39. The Unified Fund Exemption regime doesn't usually include digital assets as qualifying securities, and cryptocurrency is not addressed in VA borrowing and lending tax provisions, as it's not considered "stock" or "money."
Bottom Line
In summary, for those stepping into Hong Kong's crypto market, choosing the right exchange is crucial. It's essential to opt for platforms regulated by the Securities and Futures Commission (SFC) with a Virtual Asset Service Provider (VASP) license. Our in-depth analysis of the top five exchanges, focused on regulatory compliance, cryptocurrency variety, user interface, HKD deposit avenues, and fee transparency, identifies the standout platforms for investors.
From Bybit’s broad cryptocurrency range to Gate.io's wealth of altcoins, each exchange offers distinct advantages to meet varied investor preferences. This roundup is designed to simplify your crypto trading initiation, ensuring a secure, well-informed experience in Hong Kong.
.webp)
