HKVAX: Third Licensed Virtual Asset Operator
The Hong Kong Virtual Asset Exchange (HKVAX) has achieved a significant milestone by securing approval-in-principle from the Securities and Futures Commission (SFC) to conduct Type 1 and Type 7 regulated activities. This approval cements HKVAX’s position as the third licensed virtual asset operator in Hong Kong, marking a pivotal step forward in the evolution of the city’s digital finance landscape.
We are excited to announce that HKVAX has received approval-in-principle from the SFC to carry out Type 1 and Type 7 regulated activities, will become just the third licensed virtual asset operator in Hong Kong.
Read the full press release: https://t.co/D0r6w2Ew9o pic.twitter.com/FIAGznTJtS
— Hong Kong Virtual Asset Exchange (HKVAX) (@hkvax) August 11, 2023
Vision for Global Financial Connectivity
Founded by visionary Hong Kong entrepreneurs, HKVAX is on a mission to bridge the divide between conventional finance and the digital realm, as well as between the East and the West. The exchange aims to set a new industry benchmark by redefining digital asset trading standards. One of its key aspirations is to spearhead innovative product categories like Security Token Offerings (STOs), which enable asset-backed tokens, thus unlocking new avenues for investment within the emerging Web3 paradigm.
Dr. Anthony Ng, Co-Founder and CEO of HKVAX, expressed his enthusiasm, stating, “Hong Kong has blossomed into a fertile ground for pioneering technologies, fintech, and virtual assets. Receiving approval-in-principle from the SFC is a momentous achievement, and we eagerly anticipate establishing a secure and trustworthy investment environment within one of the world’s most dynamic financial hubs.”
OTC Brokerage, Exchange and Custody
Subject to obtaining the final Type 1 (dealing in securities) and Type 7 (providing automated trading services) licenses, HKVAX is poised to roll out three core products. These include an Over-the-Counter (OTC) brokerage boasting high liquidity and minimal spreads, an institutional-grade exchange platform, and a fully insured custody solution, complete with robust access control mechanisms.
Dr. Ng added, “As our operations expand in Hong Kong, our goal is to be the premier provider of reliable investment solutions. We also look forward to forging collaborations with strategic investors as we embark on our next rounds of funding.”
Today’s announcement aligns with recent shifts in Hong Kong’s regulatory landscape. The government and the SFC are taking proactive measures to establish a resilient and responsible virtual asset industry framework. Moreover, registered institutions and licensed corporations will soon be required to partner exclusively with SFC-approved virtual asset exchanges for relevant trading services.
Commitment to Industry Standards
Sam Fok, Co-Founder and COO of HKVAX, emphasized the significance of these changes. “Our commitment to governance, compliance, risk management, and security since our inception has prepared us well for the challenges faced by the digital asset industry. We welcome the SFC’s recent regulatory proposals, which foster transparency, reliability, and investor protection. These changes further underscore Hong Kong’s ambition to emerge as a global hub for virtual assets.”
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Beyond its product suite, HKVAX is forging global alliances by collaborating with licensed issuance platforms from prominent financial centers like New York, London, and Singapore. This strategic approach aims to provide investors with seamless access to diversified investment opportunities worldwide, underpinning HKVAX’s vision to create a truly interconnected investment ecosystem.
