The Hong Kong Securities and Futures Commission (SFC) has taken a step towards bolstering the city’s virtual asset landscape. This is by granting an in-principle approval to the Hong Kong Virtual Asset Exchange (HKVAX). This approval will pave the way for HKVAX to operate a virtual asset trading platform in accordance with the region’s robust securities laws.

HKVAX proudly announced that it has secured an “approval-in-principle” from the esteemed Hong Kong SFC. Importantly, this crucial milestone enables HKVAX to engage in Type 1 and Type 7 regulated activities. Furthermore, it will cement its position as a trailblazing player in the virtual asset arena.

HKVAX’s Comprehensive Licensing

The newly granted Type 1 license empowers HKVAX to oversee a dynamic digital asset trading platform that specializes in securities. Simultaneously, the Type 7 license extends the company’s reach. This is by officially authorizing the provision of automated trading services to both retail users and institutional investors.

Also, HKVAX has its sights set on pioneering innovative investment avenues within the realm of Web3. With a strategic focus on security token offerings, the exchange aims to unlock unprecedented opportunities for savvy investors. This ambitious vision further aligns seamlessly with the burgeoning Web3 landscape, poised to reshape the future of investments.

An image of the types of licenses obtainable from Hong Kong SFC

HKVAX’s Roadmap

Upon securing final approval, HKVAX is gearing up to introduce an array of pioneering services, each catering to distinct user needs:

  1. Over-the-Counter (OTC) Brokerage: Users will gain seamless access to a platform facilitating the trading of both fiat and digital assets, ensuring fluidity in investment strategies.
  2. Institutional-Grade Exchange Platform: HKVAX will offer a high-performance exchange platform tailored to the unique demands of institutional investors, fostering a secure and efficient trading environment.
  3. Insured Custody Solution: Recognizing the paramount importance of asset security, HKVAX is poised to roll out an insured custody solution that provides peace of mind to its users.

Anthony Ng, the visionary co-founder and CEO of HKVAX, expressed his excitement regarding this monumental achievement. He emphasized that as HKVAX continues to evolve, the exchange is steadfastly committed to expanding its product portfolio within Hong Kong. Furthermore, strategic collaboration with investors will play a pivotal role in propelling HKVAX’s future funding endeavors.

Crypto Retail Trading Takes Center Stage

HKVAX’s milestone announcement follows hot on the heels of Hong Kong’s recent foray into crypto retail trading. Notably, exchanges HashKey and OSL have carved their places as pioneering players in this emerging landscape.

Hong Kong flag and crypto coins

On Aug. 3, these forward-looking firms clinched the distinction of becoming the first entities to secure licenses. They signifyied their eligibility to offer cutting-edge crypto trading services within Hong Kong’s dynamic market.

Regulatory Vigilance Post-FTX: SFC’s Commitment

Hong Kong’s regulatory authorities have demonstrated unwavering commitment in the wake of the FTX collapse. In a landmark speech on June 24, SFC CEO Julia Leung Fung-yee articulated the pivotal role of crypto trading within the virtual asset ecosystem, particularly following the FTX exchange collapse in 2022.

Furthermore, Leung underscored the significance of the newly implemented licensing framework for virtual asset service providers. This is a testament to Hong Kong’s dedication to safeguarding investor interests as they navigate the dynamic world of crypto trading.

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