How to Sell Crypto in Hong Kong in 2021

Hong Kong is a beacon of cryptocurrency and individuals holding crypto assets. However, with so many options it can be difficult to find good information on how to sell your cryptocurrency within the territory.

Read on in this guide to learn the best way to sell your crypto in Hong Kong.

How to Sell Crypto in Hong Kong

In order to sell your crypto in Hong Kong, you will need to use an exchange that allows you to exchange cryptocurrency into fiat currency such as the Hong Kong or U.S. dollar.

For your convenience, we’ve compiled a guide on some of the best cryptocurrency exchanges available in Hong Kong. We’ve also included some key information that will help you understand how selling crypto in Hong Kong works! 

Is Cryptocurrency Legal in Hong Kong?

Cryptocurrency is legal as an asset class in Hong Kong and many Hong Kongers hold crypto assets.

However, there are strict licensing requirements in regards to certain trading behaviors and making sure funds are not being used for money laundering. In many cases, riskier types of trading are restricted to professional investors and not available to retail investors.

Regulations and legal status can change quickly and it is to your benefit to do your own research on current regulations in regards to using cryptocurrencies as payment, trading cryptocurrencies, etc. 

Exchange Hacks and Crypto Scams in Hong Kong

Many Hong Kong cryptocurrency exchanges have experienced hacks or had their customers targeted by crypto scammers and other potential frauds. 

It is best to be cautious and research potential exchanges for their track records and history before using them. 

How to Choose a Crypto Exchange

When looking to choose a cryptocurrency exchange their many factors to consider including: 

  • Security: Do the exchange operators have an excellent reputation for security and protecting your digital assets and information? Has the exchange ever been hacked?
  • Fees: What fees does the exchange charge? Not just for selling your crypto but also for moving your crypto onto the exchange and moving your fiat money off of the exchange after selling.
  • Cryptocurrencies: Do they offer services for the cryptocurrency that you are looking to sell? 
  • Pros & Cons:  Any other relevant information for the exchange. Do they offer unique and useful features? Is there regulatory scrutiny on the exchange?

The Best Exchanges to Sell Crypto in Hong Kong

2 Coinbase

Coinbase is one of the most well-known exchanges and very popular with casual investors beginning their crypto journeys due to its simple interface and brand name.

  • Has been hacked?: A large-scale hack of the exchange has not occurred yet but individual customer accounts that are not properly secured have been targeted.
  • Fees: 1.5% to sell your cryptocurrency for fiat currency (Hong Kong Or U.S. dollars). Extra fees for withdrawing fiat to your own wallet or bank account ranging from 1.5-3%.
  • Cryptocurrencies: Currently offers around 80 different currencies but is subject to change & regulation.

Pros (What We Like)

  • Easy to use.
  • Well established.
  • High liquidity.

Cons (What We Don’t Like)

  •  Lack of financial privacy (Coinbase has been known to overshare information with government entities).
  • Regulatory concerns due to the company’s size. Forces customers to follow strict regulatory requirements.
  • Large exchanges are targets for hackers.

3 Binance

Binance is the largest exchange by volume in the world and offers one of the largest selections of cryptocurrencies. It is popular with traders and slightly more advanced users due to its complex interface.

  • Has been hacked?: Binance has suffered from phishing attacks in the past. This means that hackers created a fake lookalike version of Binance and were able to steal users’ login names and passwords once they entered them on the fake version of the site. The last major attack was in 2018.
  • Fees: 0.5-2.5% for selling crypto into fiat dollars, depending on the method used. $115-$230 HKD ($15-$30 USD) for fiat withdrawals to your bank account.
  • Cryptocurrencies: Over 500

Pros (What We Like)

  •  Large selection of cryptocurrencies and digital tokens.

Cons (What We Don’t Like)

  • Recent regulatory scrutiny has been intense.
  • UI is bloated and can be confusing/difficult to navigate.
  • Has been targeted for hacks in the past.
  • Poor customer service has led to mass complaints and even in-person protests.

4 FTX

FTX is a relatively new entrant to the exchange world but has grown extremely fast due to its low fees, large selection, and relatively relaxed policies. FTX was founded by crypto celebrity billionaire Sam Bankman-Fried.

  • Has been hacked: FTX has never been hacked
  • Fees: Fees for converting crypto to fiat are calculated based on a variety of factors at the time of the trade but are generally considered to be quite low. $580 HKD ($75 USD) for fiat withdrawals.
  • Cryptocurrencies: Around 100 cryptos

Pros (What We Like)

  • Generally lower fees for selling crypto.
  • Large selection.

Cons (What We Don’t Like)

  • Complicated features, more suitable for professional investors.
  • High withdrawal fees.
  • More prone to strict regulations than overseas exchanges as FTX is based in Hong Kong.

5 LocalBitcoins

LocalBitcoins is a bit different from regular exchanges. Instead, it is a peer-to-peer marketplace that allows buyers and sellers to connect to trade Bitcoin.

  • Has been hacked?: LocalBitcoins is a peer-to-peer marketplace. It has never been hacked, but many users have been scammed and user discretion is advised.
  • Fees: Fees to send your Bitcoin to a LocalBitcoin wallet before selling, generally $75-150 HKD ($10-20 USD).
  • Cryptocurrencies: Bitcoin only.

Pros (What We Like)

  • Slightly more private than other options like a traditional exchange due to P2P trading.
  • Possibility of sub-market value trades.

Cons (What We Don’t Like)

  • Can be risky to meet strangers to exchange money from a peer-to-peer exchange or to trade with them online.
  • Bitcoin only.
  • No longer non-KYC.

6 Bitfinex

Bitfinex is one of the longest-running and largest cryptocurrency exchanges around. It is run by the same company that owns Tether, the largest stablecoin in the world.

  • Has been hacked?: Yes. Bitfinex suffered from a large-scale hack in 2016 where over 100,000 Bitcoins were lost.
  • Fees: 0.2% for selling crypto to fiat dollars. 0.1-3% for fiat withdrawals depending on the method used.
  • Cryptocurrencies: Over 200 offered.

Pros (What We Like)

  • Large selection.
  • Has been around for a long time.
  • Generally lower fees than other large exchanges.

Cons (What We Don’t Like)

  • Has been hacked in the past.
  • Some withdrawal method fees are quite high.
  • Regulatory scrutiny.

7 Gemini

Gemini is owned by the Winklevoss twins, famous for their involvement in the founding of Facebook and subsequent falling out with Mark Zuckerberg. Their exchange is a relatively new entry but has gained traction due to its focus on security.

  • Has been hacked?: Gemini has never been hacked.
  • Fees: 1.5% for selling crypto to fiat dollars. 0-3.5% for fiat withdrawals to a bank account.
  • Cryptocurrencies: Around 50 coins are currently listed.

Pros (What We Like)

  • Focus on higher quality coins and tokens means less bloat in the UI.
  • Above-average security reputation.

Cons (What We Don’t Like)

  • Smaller selection than others.
  • Fees are generally on the higher side.

8 Kraken

Kraken is one of the most secure exchanges on the list, having never been hacked in their history. Kraken is a favourite of some more seasoned veteran crypto traders. It comes with advanced features while remaining accessible to those newer to crypto trading.

  • Has been hacked?: Kraken has never been hacked to this point. That does not mean individual accounts can not be hacked if you are not careful. Kraken also suffered low liquidity and a flash crash in 2021, resulting in lost user funds.
  • Fees: 1.5% for converting cryptocurrency to fiat. ~$150-300 HKD ($20-40 USD) for fiat withdrawals to bank account. 
  • Cryptocurrencies: Around 50 coins are currently listed.

Pros (What We Like)

  • Additional investor protection measures make it one of the most secure virtual asset trading platforms.

Cons (What We Don’t Like)

  • Lower selection of cryptocurrencies than some of the other exchanges listed.
  • Limited payment methods & services offered.
  • High fees.

9 Huobi

Huobi is a very large exchange currently based in Seychelles but founded in China. They host one of the largest user bases and have low fees, but withdrawal limits are infamously low.

  • Has been hacked?: Huobi has not been hacked to this point.
  • Fees: 0.02% fees for selling. $35-$150 HKD ($5-20 USD) for fiat withdrawals.
  • Cryptocurrencies: Around 50 cryptocurrencies currently offered.

Pros (What We Like)

  • Low fees.

Cons (What We Don’t Like)

  • Very restrictive withdrawal limits.

FAQ

How do I cash out of crypto in Hong Kong?

To cash out of crypto and into a fiat currency such as Hong Kong or U.S. dollars, you generally have two options.

1. Sell your cryptocurrency for fiat dollars on an exchange and transfer the dollars to your bank account. This process can be slow and cost a lot of money in fees for crypto conversions to fiat dollars. Financial institutions can also choose to not accept funds from certain exchanges.

2. Use a crypto debit card to automatically convert your digital currency into the equivalent market rate in dollars when making a purchase anywhere that accepts debit cards.

This allows you to sell your crypto without having to take the additional steps listed in the first option.

CryptoWallet.com is unique in that it offers you both options in an easy to use and affordable way.

What is the price of Bitcoin in Hong Kong?

Exchange rates between HKD and BTC vary on a day-to-day basis, but at the current time of writing the average exchange price of Bitcoin is $359,577 Hong Kong dollars (approximately $46,145 U.S. dollars).

Where can I find a Bitcoin ATM in Hong Kong?

There are currently over 130 Bitcoin ATMs located throughout Hong Kong. The best way to find one is to simply search “Hong Kong Bitcoin ATM” in your search engine of choice. This will provide you with links to many services which provide maps of Bitcoin ATMs in Hong Kong.

Are the Hong Kong protestors using crypto?

Yes, many organizations and charities related to the Hong Kong protests have used cryptocurrency wallets to send and receive payments. The nature of many cryptocurrencies like Bitcoin makes them semi-anonymous depending on what privacy methods you employ, however, it should be noted that most cryptocurrency use is easily trackable by governments if proper privacy precautions are not taken.

How to sell my crypto anonymously

It can be very difficult to sell your cryptocurrency anonymously due to the transparent nature of blockchain technology and the verification demands that exchanges (as intermediaries on compliance) must legally enforce.

The easiest way to sell your cryptocurrency semi-anonymously is to use a crypto debit card that automatically converts your crypto into fiat dollars for regular day-to-day payments.