In-Principle Approval for HKVAX
Hong Kong’s Securities and Futures Commission (SFC) has given its tentative seal of approval for Hong Kong Virtual Asset Exchange (HKVAX) to operate within the city’s stringent securities regulations.
Details on the Licensing
HKVAX, on Aug. 11, declared it had obtained an “approval-in-principle” from the SFC, permitting the execution of Type 1 and Type 7 regulated ventures. This translates to a green light for the platform to manage a digital asset exchange that caters to securities, and also the authorization to proffer automated trading functionalities for both individual and institutional clientele.
HKVAX’s Vision for the Future
With its eyes set on the horizon, HKVAX is gearing up to introduce a new product niche termed security token offerings. These offerings aim to capitalize on Web3-based investment ventures. Once the regulatory pathway is entirely cleared, the exchange plans to furnish services like over-the-counter (OTC) brokerage, facilitating fiat-to-digital asset conversions, a sophisticated exchange platform tailored for institutional needs, and an insured vault for safekeeping assets.
Word from the Top
Anthony Ng, the driving force behind HKVAX as its co-founder and CEO, expressed optimism. He mentioned the platform’s aspirations to broaden its horizons by diversifying its product suite in the Hong Kong market. Ng also hinted at potential collaborations with strategic partners in forthcoming investment phases.
Hong Kong’s Crypto Landscape
The path for HKVAX was somewhat paved earlier this month when Hong Kong welcomed the inception of crypto retail trading, courtesy of exchanges HashKey and OSL. Both these entities clinched the coveted licenses to render crypto trading amenities in the region on Aug. 3.
However, the backdrop to these developments is the regulatory vigilance that has become the order of the day, especially after the untimely demise of FTX exchange last year. Julia Leung Fung-yee, the chief at SFC, underscored the significance of crypto trading in today’s virtual asset ecosystem. Through a recent address, she reiterated the need for a robust licensing mechanism for virtual asset facilitators to uphold investor interests and security.
