Hong Kong Securities and Futures Commission approves EX.IO over-the-counter trading business, virtual asset trading ecosystem further upgraded

Hong Kong-licensed virtual asset trading platform EX.IO has received official approval from the Hong Kong Securities and Futures Commission (SFC) to conduct over-the-counter (OTC) virtual asset trading services under its existing licensing framework. This not only marks an expansion of EX.IO’s business scope but also reflects the further improvement of Hong Kong’s virtual asset regulatory system, providing more options for large transactions and institutional investors.

The Core Significance of Regulatory Approval

Business expansion within the license framework

EX.IO’s OTC trading service approval is conducted under its current virtual asset trading platform license framework, which means there is no need to apply for a new license separately, but rather a business extension based on existing compliance. This model ensures business compliance while improving approval efficiency. The approval from the Hong Kong SFC demonstrates recognition of the platform’s compliant operation and also provides a reference path for other licensed platforms exploring OTC trading services.

Market demand for OTC trading

Compared to exchange trading, OTC trading has several significant advantages. First, it can handle large transactions without causing noticeable market price impact, which is especially important for institutional investors and high-net-worth clients. Second, both parties can negotiate prices and terms, increasing flexibility. Third, conducting OTC trades through licensed institutions helps reduce trading risks and safeguard funds.

Supported Currencies and Market Status

The initial selection of supported currencies is quite representative. BTC and ETH, as the two largest cryptocurrencies by market cap, are currently priced around $91,125 and have a market cap of approximately $1.82 trillion, accounting for 58.33% of the entire cryptocurrency market. The trading demand for these two currencies is the strongest and they are the main focus for institutional investors.

Support for stablecoins USDT, USDC, and USDT(TRC20) reflects actual market needs. These stablecoins have become the foundation of crypto trading pairs and the main channels for investors to enter and exit the crypto market. Supporting USDT across multiple chains (including the TRC20 version) demonstrates the platform’s consideration of cross-chain trading.

Support for USD and HKD reflects localization, facilitating investors’ fiat-to-crypto exchanges, which is especially important for the Hong Kong market.

Potential Market Impact

Improved compliant trading ecosystem

As more licensed platforms are approved to conduct OTC trading, the compliant ecosystem of Hong Kong’s virtual asset trading is gradually improving. This provides investors with more choices and creates a more regulated trading environment for market participants.

Convenience for institutional investors

The opening of OTC channels is beneficial for institutional investors. They can conduct large transactions through licensed platforms, avoiding price fluctuations on exchanges, while enjoying higher security protections.

Optimization of market liquidity

Although OTC trades are usually not included in exchange trading volume, they supplement exchange liquidity, providing market participants with more options, which overall helps optimize market liquidity allocation.

Summary

EX.IO’s approval to conduct OTC trading reflects the ongoing evolution of Hong Kong’s virtual asset regulatory framework. By expanding business within the existing license framework and supporting mainstream currencies like BTC, ETH, and stablecoins, the platform is meeting market demand for large transactions and institutional-grade services. This move is not merely a business expansion but a signal that Hong Kong’s virtual asset ecosystem is becoming more mature and regulated. For investors, this means more compliant and secure trading options.