A Lawyer’s Visit to Hong Kong’s Crypto OTC Shops

May 08, 2025

By Liu Honglin

Translated by WuBlockchain

While strolling through Hong Kong over the weekend, I passed by the Hopewell Centre in Wan Chai and decided to drop into a few crypto OTC (over-the-counter) exchange shops. Interestingly, this location was chosen quite wisely. The Hopewell Centre is situated in one of the most politically and economically dense areas of Hong Kong — just next to the Legislative Council, the Government Headquarters, and Tamar Park. Across one wall is a scene of suits and formality, while inside the mall is a completely different world: low-key crypto exchange counters and hardware wallet booths are scattered across different floors. The crowd here doesn’t resemble traditional finance professionals, but more like a miniature underground financial market that straddles the line between “formal” and “informal.”

The first shop I came across was Crypto HK. A large white wall with a massive “HK” in the center marked its presence. The booth was labeled L1/51 — clean and tidy. A big screen at the entrance displayed real-time buying and selling prices for BTC, ETH, USDT, ADA, and other major tokens. Settlement in HKD, CNY, USD, KRW, and JPY was supported. A conversion table beside it clearly updated the exchange rates every 10 minutes.

Beneath the screen, a glass display was filled with hardware wallets: Trezor, Ledger, CoolWallet, SafePal, Ellipal, SecuX… you name it. From cold wallets to mnemonic phrase safes, even some domestic Chinese brands were prominently displayed. It’s clear the shop aims to be a one-stop service center: not just for buying crypto but for securing assets too.

A wall listing their “partners” featured familiar names like HTX (Huobi), OKX, and Binance, alongside various “official partner” badges from wallet manufacturers. Though these labels often imply more “friendly cooperation” than formal ties, to an average user, the shop feels like a semi-official service station.

Up one floor via escalator, around the corner was Tian Tian Crypto. Compared to the previous shop, this one had a more grassroots, street-side feel. The storefront was small, with a money counter, QR codes, and an iPad on the desk. Giant logos of BTC, ETH, LTC, and XRP were plastered on the outer wall, loudly declaring “crypto sold here.” There was little sales talk and none of the polish associated with traditional finance. The staff sat behind the counter, casually watching their screen, only occasionally looking up to greet a customer. The atmosphere was relaxed and natural.

Further inside, I found ONE GO Crypto Exchange. This one had a more polished design, with a gold logo on a white wall. The name “One Go” clearly implies: “Get it all in one go.” A wall at the entrance showcased a massive Tether (USDT) symbol, accompanied by a cute black cartoon cat, seemingly targeting a younger clientele.

This shop focused on USDT exchange, supporting both HKD and CNY cash transactions, with clearly posted fees. In the volatile crypto market, their pricing was quite reasonable. But those familiar with OTC would know the real profit isn’t just in service fees — exchange rates, fund flows, and timing all offer arbitrage opportunities.

I chatted briefly with one shop owner. He said, “In the past, 80% of customers were crypto speculators. Now, many come for business or daily life needs. For example, mainland tourists — small business owners — come with cash to exchange for USDT for cross-border trade. Some crypto workers also come to cash out their salaries.”

Web3 isn’t a utopia or a castle in the air. It’s quietly but tenaciously woven into real life.

After walking through these stores, I formed a few impressions:

1. USDT is the lifeblood of OTC markets.

Whether it’s BTC, ETH, or any other asset, 99% of OTC trades rely on USDT. Stablecoins aren’t just the “dollars” of the crypto world — they are the real lubricants of the on-chain financial system. While many still debate Bitcoin’s store-of-value narrative, here, stablecoins dominate day-to-day payments, cross-border transfers, and asset storage.

2. OTC shops have become industrialized.

Behind each small store lies an invisible supply chain: upstream suppliers (whales, miners, cross-border funds), intermediaries (OTC agents, brokers), payment and clearing networks (offshore accounts, third-party channels), hardware wallet providers, compliance service vendors, and more. Though each store may only have a few staff, the networks behind them are vast. One shop employee told me their group has been operating in Hong Kong for over a decade, with more than a dozen branches and many agent partners helping expand business.

3. Regulation and gray zones coexist in Hong Kong.

While the Hong Kong government has introduced a licensing regime for virtual asset trading platforms, there’s no mandatory unified oversight for retail OTC counters yet. Most shops operate under the guise of “crypto exchange” or “hardware wallet sales” to avoid legal definitions of “securities trading.” This regulatory gray zone gives the industry vitality but also harbors legal risks. Without a license, user protection is minimal — there’s no reliable complaints or arbitration process. That’s why customs and the SFC must roll out OTC licensing frameworks soon.

4. KYC/AML standards vary wildly.

Some shops are strict — both buyer and seller must register with real names and even provide sources of funds, such as past month’s cash flow statements. But most stores only ask for a QR payment and wallet address — fast and simple. Cash is often recommended. Whether you can deposit the received cash into a bank is your own problem. Staff are clearly aware of the risks — illegal funds in these transactions can result in account freezes or even investigations. This is not just a mainland issue; even in Hong Kong, more clients have consulted our firm in recent months about frozen bank accounts.

The future of crypto assets lies not just in exchanges, NFTs, or public chain tech, but also in countless little corners like the Hopewell Centre, where real commercial demand and capital flows take shape.

As I stepped out, joggers circled Tamar Park, some people basked in the sun, others fed pigeons or fished. The noise of the financial world and the peace of everyday life coexist — just separated by a street.

Wu Blockchain

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