On 2 October 2024, Hong Kong Virtual Asset Exchange (HKVAX) officially announced that it had obtained Type 1 (dealing in securities) and Type 7 (providing automated trading services) licenses from the Hong Kong’s Securities and Futures Commission (HK SFC), along with a license under the Hong Kong’s Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). This development makes HKVAX the third regulated virtual asset platform in Hong Kong, joining the ranks of HashKey Group and OSL, which are currently the only operators permitted to serve retail customers in the territory.
HKVAX was established with a strong focus on combining traditional financial services with blockchain technology, providing a wide array of virtual asset services. These include over-the-counter (OTC) trading, a 24/7 trading platform, and asset custody with advanced security features such as multi-signature technology and wallet separation. The platform has a particular emphasis on Security Token Offerings (STOs) and Real-World Asset (RWA) tokenization, which aim to enhance asset liquidity and create new opportunities for professional investors. The newly obtained licenses will enable HKVAX to further integrate these offerings into a virtual asset ecosystem, which will support its expansion.
With the acquisition of these licenses, HKVAX has solidified its position in the regulated virtual asset market in Hong Kong. The Type 1 license enables the platform to deal in securities, while the Type 7 license allows it to provide automated trading services, both of which are governed by the Hong Kong’s Securities and Futures Ordinance (SFO). Hong Kong’s AMLO license ensures that the platform adheres to anti-money laundering (AML) and counter-terrorist financing (CTF) standards and HKVAX will implement Know Your Customer (KYC) protocols, alongside other security measures to protect investor assets and enhance market transparency.
The licensing process required HKVAX to demonstrate full compliance with several regulations, including the need for strong capital reserves, secure custody practices, and advanced cybersecurity protocols..
In a statement, Anthony Ng, Co-Founder and CEO of HKVAX, remarked, “We are part of a financial landscape revolution, aiming to establish Hong Kong as the STO and RWA center for Asia and beyond.”
To strengthen its ecosystem, HKVAX has been forming partnerships with industry players, including brokers, Money Service Operators (MSOs), and Exchange Traded Fund (ETF) issuers to build a virtual asset infrastructure that supports the growth of Hong Kong’s financial innovation sector. The company also plans to introduce end-to-end virtual asset management services, including consulting on asset tokenization, technical support, token issuance, secondary market trading, and comprehensive custody solutions. The company’s focus on STOs and RWAs positions it well to capitalize on emerging trends in the global financial markets. HKVAX plans to enhance its services, particularly in the areas of STOs and RWAs, providing institutional and professional investors with more opportunities to engage in secure and transparent trading.
(Source: https://www.hkvax.com/news/detail?diffId=1828727641257852928)
