Hong Kong is accelerating its journey to become a global digital asset hub. Since early August 2025, an increasing number of cryptocurrency exchanges have either received formal regulatory approvals or obtained in-principle licensing from the Securities and Futures Commission (SFC). However, one of the biggest operational hurdles remains: opening a bank account. This crucial step enables exchanges to legally deposit and withdraw fiat funds—making it foundational for any compliant platform.
This guide breaks down the two primary types of bank accounts available in Hong Kong, highlights their key differences, and helps crypto exchanges make informed decisions when applying. Whether you're preparing for a Virtual Asset Trading Platform (VATP) license or expanding your Web3 presence, understanding these banking structures is essential.
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The Regulatory Momentum Behind Hong Kong’s Crypto Growth
Hong Kong’s proactive stance on digital assets has created a favorable environment for crypto businesses. Here are key developments that signal institutional support:
- August 3: HashKey Exchange officially upgraded its Type 1 and Type 7 licenses, becoming the first SFC-licensed platform permitted to serve retail investors.
- Also on August 3: BC Technology Group announced that its subsidiary, OSL Digital Securities Limited, received SFC approval to expand services to include Bitcoin and Ethereum trading for retail clients.
- August 11: HKVAX announced it received in-principle approval from the SFC to conduct regulated activities under Categories 1 and 7, positioning itself as Hong Kong’s third licensed virtual asset exchange.
- August 24: OKX Global Chief Business Officer Jason Lau revealed that OKX Hong Kong had completed most preparatory work for its VATP license application and was nearing submission of external audit reports.
- August 30: SEBA Bank’s Hong Kong branch—the crypto-friendly Swiss financial institution—received in-principle SFC approval to offer virtual asset trading, OTC derivatives, investment advice, and discretionary asset management related to digital assets.
- August 30 (consecutive day update): Pando Trust Limited announced it secured both TCSP (Trust or Corporate Service Provider) and Trustee licenses on August 29, enabling expanded fund management operations.
- September 4: Jason Lau reiterated that OKX HK's licensing process was entering its final phase, with expectations to receive full approval by June 2026 and onboard between 100,000 to 200,000 retail users in the first year.
These milestones reflect growing confidence in Hong Kong’s regulated crypto ecosystem. As regulatory clarity improves, traditional financial institutions are increasingly open to engaging with compliant Web3 firms.
Two Types of Bank Accounts for Crypto Exchanges: What You Need to Know
Despite increasing openness, not all bank accounts serve the same purpose. For crypto exchanges, distinguishing between the following two account types is critical:
Operating Account (Operating Capital Account)
An operating account is designed for general business expenses. It cannot hold or process client funds under any circumstances. Its primary uses include:
- Payroll disbursement for local teams
- Rent payments for office space
- Utility bills (electricity, water, internet)
- Administrative costs and capital injections
This account plays a vital role during the pre-licensing stage. It allows exchanges to establish a physical presence in Hong Kong, hire compliance and risk management staff, and demonstrate operational readiness to regulators.
Importantly, having an active operating account signals legitimacy to both banks and the SFC. It shows that the company is investing in local infrastructure and adhering to corporate governance standards.
Settlement Account (Client Fund Handling Account)
A settlement account is specifically intended for handling customer deposits and withdrawals in fiat currency. Due to its sensitivity, this account undergoes stricter scrutiny and follows a phased activation process:
- Initial Setup (Closed Status): When first opened, the settlement account remains inactive or “closed” to external transactions.
- In-Principle Approval Phase: Once the exchange receives in-principle licensing from the SFC, banks request additional AML/KYC documentation, including transaction monitoring systems, custodial arrangements, and internal compliance policies.
- Testing Phase: After enhanced due diligence, the bank may allow limited testing of deposit and withdrawal functions—often using simulated transactions or capped amounts.
- Full Activation: Only upon receiving full SFC licensing is the settlement account fully unlocked for live customer settlements.
This tiered approach protects both financial institutions and end users by ensuring robust anti-money laundering controls are in place before real client funds are processed.
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Why Choosing the Right Account Matters for Licensing Success
Misunderstanding or misapplying for these accounts can delay—or even jeopardize—your licensing efforts. For example:
- Applying for a settlement account too early without sufficient compliance infrastructure may result in automatic rejection.
- Using an operating account to temporarily hold customer funds—even with good intentions—violates banking regulations and could lead to immediate account freezing.
Banks assess multiple factors beyond just the business model:
- Ultimate Beneficial Owners (UBOs): Full disclosure of ownership structure is required.
- Minimum Capital Requirements: Companies must demonstrate adequate paid-up capital.
- Corporate Structure: Clear separation between operational and client-facing entities is preferred.
- AML Framework: Proof of transaction monitoring tools, suspicious activity reporting protocols, and staff training programs.
In recent months, there has been a noticeable rise in Web3 companies seeking banking services in Hong Kong. While banks are more receptive than before, they remain cautious gatekeepers. A well-prepared application aligned with regulatory expectations significantly increases success rates.
Strategic Steps for Opening a Hong Kong Bank Account
To improve your chances of approval, follow this structured approach:
- Start with an Operating Account: Establish your local footprint first. Hire local staff, lease office space, and open an operating account to show commitment.
- Engage Early with Regulators and Banks: Proactive dialogue builds trust. Share your compliance roadmap with potential banking partners.
- Prepare Comprehensive Documentation: Include business plans, AML policies, IT security audits, organizational charts, and proof of capital.
- Align with In-Principle Licensing Timeline: Time your settlement account application to coincide with SFC feedback.
- Partner with Compliance-Focused Institutions: Consider working with banks that have already demonstrated openness to digital asset firms (e.g., SEBA Bank HK).
- Maintain Transparent Communication: Promptly respond to due diligence requests and provide updates on licensing progress.
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Conclusion: Building a Sustainable Crypto Business in Hong Kong
Hong Kong’s push to become a global digital finance center is more than policy—it’s becoming reality. With clear licensing pathways and growing banking support, the ecosystem is maturing rapidly. For crypto exchanges, securing the right type of bank account isn’t just a logistical step; it’s a strategic move toward long-term compliance and scalability.
By clearly differentiating between operating and settlement accounts—and aligning applications with licensing stages—exchanges can navigate the financial infrastructure smoothly. As local institutions embrace Web3 innovation, now is the time to build responsibly and position your platform at the forefront of Asia’s next financial revolution.
Frequently Asked Questions (FAQ)
Q: Can a crypto exchange open a bank account before getting SFC approval?
A: Yes—but only an operating account for business expenses. Settlement accounts require at least in-principle licensing before activation.
Q: What happens if I use an operating account for customer deposits?
A: This violates banking regulations and can lead to immediate account closure, fines, or regulatory penalties.
Q: How long does it take to open a settlement account in Hong Kong?
A: Typically 4–8 weeks after submitting complete documentation, assuming in-principle SFC approval has been granted.
Q: Are foreign-owned crypto exchanges eligible for Hong Kong bank accounts?
A: Yes, but they must register a local entity, disclose ultimate beneficial owners, and meet capital and compliance requirements.
Q: Do I need both account types?
A: Ideally, yes. An operating account supports daily operations; a settlement account enables customer transactions once licensed.
Q: Which banks in Hong Kong are most crypto-friendly?
A: While most major banks remain cautious, institutions like SEBA Bank Hong Kong have shown strong support for regulated virtual asset firms.