The Securities and Futures Commission (SFC) of Hong Kong has granted preliminary approval to the Hong Kong Virtual Asset Exchange (HKVAX) to operate as a virtual asset trading platform under the region's securities laws. On August 11, HKVAX announced that it h ad received " approval-in-principle" from the SFC for Type 1 and Type 7 regulated activities. The Type 1 license permits the platform to run a digital asset trading platform handling securities, while the Type 7 license allows the company to offer automated trading services to both retail users and institutional investors.
HKVAX intends to offer security token offerings (STOs) to capitalize on investment opportunities in the Web3 landscape. Upon receiving final approval, the exchange plans to provide over-the-counter (OTC) brokerage services, facilitate trading between fiat and digital assets, offers an institutional-grade trading platform, and provide solutions for insurance custody.
Anthony Ng, the co-founder and CEO of HKVAX, mentioned that as the exchange progresses, it will expand its product range within Hong Kong and seek collaborations with strategic investors for the next round of financing.
This development follows Hong Kong's initial retail trading of cryptocurrencies by exchanges HashKey and OSL. These two companies obtained the first licenses required for offering cryptocurrency trading services in the region on August 3. Hong Kong authorities have been intensifying their regulations story overview of cryptocurrencies since the downfall of FTX exchange in 2022. Liang Fengyi, the chief executive of the China Securities Regulatory Commission, highlighted the significance of cryptocurrency trading in the virtual asset ecosystem. In her statement, Liang Fengyi underscored the importance of the new licensing framework for virtual asset service providers to ensure investor protection during trading activities.
