Hong Kong Virtual Asset Exchange (HKVAX) has recently been granted licensing by Hong Kong’s Securities and Futures Commission (SFC) to operate as a virtual asset trading platform.
This milestone makes HKVAX the third licensed crypto exchange in the city and the first to be authorized under the virtual asset regulatory framework introduced two years ago.
HKVAX’s Licensing
As per an announcement on October 4 shared with CryptoSlate, HKVAX has obtained a Type 1 license for securities trading and a Type 7 license for providing automated trading services. Additionally, the exchange has secured an Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) license from the SFC.
Specializing in Security Token Offerings (STO), Real-World Asset (RWA) tokenization, over-the-counter (OTC) trading, and custody services, HKVAX has positioned itself as one of the most regulated virtual asset platforms in Hong Kong.
Anthony Ng, CEO of HKVAX, expressed that these licenses demonstrate the company’s and Hong Kong’s commitment to leading the virtual asset sector.
Ng believes that the innovations in STO and RWA will revolutionize traditional financial markets by enhancing liquidity and creating new opportunities, aligning with Hong Kong’s aspirations to strengthen its position as a global financial center.
Co-founder Sam Fok echoed this sentiment, stating that the licenses mark the beginning of a broader expansion for the company, transforming HKVAX from a mere exchange to a “comprehensive ecosystem.”
HKVAX is actively forming strategic partnerships with prominent industry players, including brokers, Money Service Operators (MSOs), Exchange-Traded Fund (ETF) issuers, stablecoin providers, and other virtual asset platforms to drive its growth. These collaborations aim to foster a vibrant virtual asset ecosystem, contributing to Hong Kong’s ongoing financial innovation.
Hong Kong’s Regulatory Landscape
The approval of HKVAX aligns with Hong Kong’s continuous efforts to solidify its position as a frontrunner in the virtual asset market, particularly for retail investors.
Over the years, the city has implemented stringent regulations that have led several global exchanges, including Binance and HTX, to withdraw from the region. Notably, prior to HKVAX’s approval, only two local firms—HashKey Group and OSL—were permitted to cater to retail customers.
Nevertheless, the regulator has granted a “deemed to be licensed” status to 11 platforms, enabling them to continue operations while pursuing full approval from the SFC.
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