Benzinga - Hong Kong Virtual Asset Exchange (HKVAX) Friday announced it has received in-principle approval from Hong Kong's Securities and Futures Commission (SFC) to conduct Type 1 and Type 7 regulated activities.
This move positions HKVAX as the third licensed virtual asset operator in Hong Kong.
Established by local entrepreneurs, HKVAX seeks to integrate traditional finance with its digital counterpart, while also bridging Western and Eastern markets, the company stated.
Dr. Anthony Ng, co-founder and CEO of HKVAX said Hong Kong has evolved into a hub for cutting-edge technologies, fintech, and virtual assets. "Gaining the SFC's preliminary approval is a significant achievement, and we're eager to foster a secure and reliable ecosystem for investors in this dynamic financial epicenter," he said.
Upon final approval of its licenses, HKVAX will roll out three offerings: an OTC brokerage designed for fiat-to-virtual asset trading, an exchange platform tailored for institutions, and an insured custody solution ensuring clear demarcation between client and proprietary assets.
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Ng further elaborated on the company's growth trajectory, emphasizing its ambition to emerge as a trusted investment solutions provider and its plans to collaborate with strategic investors in upcoming funding rounds.
This announcement follows recent regulatory shifts unveiled by the Hong Kong Government and the SFC.
Starting in 2022, only SFC-licensed virtual asset platforms can offer pertinent trading services to registered institutions and licensed corporations.
Sam Fok, co-founder and COO of HKVAX highlighted the challenges the digital asset sector has grappled with, especially centralized governance issues.
"From our inception, our emphasis has been on governance, compliance, risk management, and security. The recent market upheavals underscore the significance of this approach. Collaborating closely with governmental bodies and stakeholders over the past two years, we've championed regulatory fortification," he said.
Adding, "The SFC's recent proposals, which broaden the virtual asset landscape while ensuring investor transparency and protection, are a testament to Hong Kong's aspiration to be a global virtual asset nexus."
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