Best Crypto Exchanges in Hong Kong

Best Cryptocurrency Exchanges in Hong Kong

Our expert team has examined and tested the 19 crypto platforms available in Hong Kong. We have identified the top options licensed by the Securities and Futures Commission (SFC). This evaluation considered available assets, trading fees, and HKD deposit options. Below is a comparison table of the 5 best digital asset exchanges for users in Hong Kong.

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1. Kraken

Kraken is the most trusted crypto exchange in Hong Kong, favored by institutional investors. Established in 2011, Kraken has built a reputation for its high-security standards and advanced trading features. Institutional clients benefit from the Kraken Pro platform, offering an OTC desk for large trades, custodial services for securing assets, and 24/7 multilingual customer support. 

Its deep liquidity and competitive spreads ensure that high-volume traders can execute large trades efficiently. Kraken supports over 280 cryptocurrencies for trading on spot markets and also offers futures contracts with up to 5x leverage. The platform offers transparent proof of reserves and consistently publishes audit reports to demonstrate the safety of client funds. 

• Fees: Maker fees from 0.16%, taker fees starting at 0.26%.
• Supported Assets: Over 290 spot trading options and 100+ margin trading options.
• Regulation and Licensing: Globally licensed by the FCA, FINTRAC, FinCEN, and is available in Hong Kong.
• HKD Deposit Methods: SWIFT, bank transfers, credit cards and debit cards.

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2. Bybit

Bybit is an exchange based in Dubai that accepts HKD deposits but is not available for users who only have Hong Kong IDs. However, local investors with residency outside of the country can use the platform and transfer HKD. It provides access to over 1,400 cryptocurrencies on spot, futures, and options markets with leverage options up to 200x. 

The platform is known for its deep liquidity and daily trading volume that often exceeds $10 billion. It has a global user base of 54 million and has an in-built copy trading feature that lets users automatically mimic the trades of successful traders. Additional features include an NFT marketplace, trading bots, a demo account and lending and borrowing services. 

• Fees: Maker fee of 0.02% and taker fee of 0.055%.
• Supported Assets: Over 1,400 digital assets.
• Regulation & Licensing: Globally regulated but not available to Hong Kong residents. Accepts deposits in HKD and can be used in Cantonese and Mandarin.‍
• HKD Deposit Methods: Bank transfers, Apple Pay, Google Pay, Samsung Pay, Alipay, credit cards, debit cards, and FPS.

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3. OKX

OKX is one of the largest exchanges globally, offering products that go beyond traditional crypto trading. Known for its integration with DeFi, it provides users access to dApps, decentralized finance services such as staking, lending, and borrowing, and NFT trading. The in-built Web3 OKX wallet allows easy interaction with various blockchains and protocols.

In addition to its DeFi offerings, OKX supports a wide range of 350 digital assets to trade on spot, margin, futures, and options markets with 100x leverage. The platform is designed with both retail and institutional investors in mind, providing tools like a high-speed API, sub-account management, and advanced charting features powered by TradingView.

• Fees: Spot trading fees start at 0.08% for makers and 0.1% for takers.
• Supported Assets: Over 350 digital assets.
• Regulation & Licensing: Globally regulated and available in Hong Kong.‍
• HKD Deposit Methods: Credit cards and debit cards.

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4. Binance

Binance is the most popular crypto exchange in the world with over 210 million registered in users in Hong Kong and 100 other countries. It provides users access to an extensive range of over 350 cryptocurrencies for spot and futures trading with 50x leverage. The extensive suite of products includes a Launchpad, lending, borrowing, copy trading and an NFT marketplace.

It is also renowned for its innovative features, including Binance Earn, which allows users to passively grow their crypto holdings, and Binance Academy, an educational platform that helps users learn about blockchain and cryptocurrency. Additionally, Binance offers a crypto debit card, giving users the ability to spend their digital assets directly in everyday transactions.

• 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: Credit or debit cards.

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5. Gate.io

Gate.io has the largest selection of assets, with over 2,600 cryptocurrencies available for trading. Whether you're into spot, margin, or futures trading, Gate.io has you covered. The platform also supports leveraged tokens, staking, and liquidity mining, allowing users to maximize their portfolios. Other unique features include copy trading and trading bots.

The exchange is known for its robust security features, such as its Proof of Reserves system, which guarantees that users' funds are fully backed and secure. It also offers Gate Pay, a crypto payment option, and various DeFi products. With a daily trading volume exceeding $8 billion and a global user base of 18 million, Gate.io has a significant international presence.

• Fees: Maker fees are at 0.1%, and taker fees are at 0.2%.
• Supported Cryptocurrencies: Over 2,600 digital currencies.
• Regulation & Licensing: Based in the Seychelles, accessible to Hong Kong users without local licensing.
• HKD Deposit Methods: Bank transfers, credit or debit cards.

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Is Crypto Regulated in Hong Kong?

Yes, cryptocurrency activities in Hong Kong are regulated by the Securities and Futures Commission (SFC). The SFC enforces strict Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) measures. Any Virtual Asset Service Provider (VASP) that operates in Hong Kong must obtain a license from the SFC. 

These providers are subject to rigorous requirements, including capital thresholds, client due diligence, and continuous monitoring of suspicious activities. The Hong Kong Monetary Authority (HKMA) oversees stablecoins under its upcoming Mandatory Stablecoin Licensing Regime, which will regulate the issuance, governance, and wallet services related to stablecoins.

The SFC's regulatory structure is designed to oversee the crypto landscape closely, ensuring that all entities offering virtual asset services follow clear operational standards. Companies based outside Hong Kong must apply for approval if they intend to operate in the local market and meet the necessary regulatory criteria.

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How is Crypto Taxed in Hong Kong?

Hong Kong has a simple approach to taxing crypto transactions, guided by the IRD's Departmental Interpretation and Practice Notes No. 39 (DIPN 39). For businesses, profits derived from crypto trading are generally subject to profits tax at 16.5% for corporations. However, individuals who trade crypto for personal investment do not pay capital gains tax.

If an individual is engaged in crypto-related business activities, such as trading or mining for profit, those earnings are likely considered taxable income and must be reported to the Inland Revenue Department (IRD). Income tax would apply based on the source and nature of the transaction. 

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How to Buy Bitcoin in Hong Kong

Buying Bitcoin in Hong Kong is a straightforward process that involves using a licensed Virtual Asset Service Provider (VASP) regulated by the Securities and Futures Commission (SFC). Here’s how you can get started:

1. Create an Account: Choose a VASP-licensed exchange that supports Hong Kong Dollars (HKD) deposits. Sign up by providing your personal details and completing the Know Your Customer (KYC) verification, which includes submitting your ID.
2. Deposit HKD: After your account is verified, go to the deposit section and choose HKD as your currency. You can select from various payment methods like bank transfers and credit or debit cards.
3. Find Bitcoin: Go to the trading section of the exchange and search for Bitcoin (BTC). Here, you’ll see the current HKD/BTC exchange rate. You can either place a market order to buy Bitcoin at the current price or set a limit order to buy at a specific price point.
4. Complete Your Purchase: Review your order details, including the amount of Bitcoin and any related fees. Once confirmed, click ‘buy’ to complete the transaction.

Your Bitcoin will then appear in your exchange wallet. For added protection, consider transferring your Bitcoin to a private wallet where you control the keys for enhanced security.

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Bottom Line

In conclusion, selecting the best exchange in Hong Kong comes down to what features matter most to you, whether it's advanced tools for experienced traders, access to Web3 products, or simplicity for newcomers. By choosing platforms licensed by the Securities and Futures Commission (SFC), like Bybit, Kraken, or OKX, you ensure a compliant trading experience.

Each of the mentioned exchanges offers tailored features for different needs, making it easier for Hong Kong investors to confidently explore the rapidly expanding crypto market.