The Hong Kong Virtual Asset Exchange (HKVAX) has achieved a giant stride, becoming the third approved crypto exchange for retailers in the Chinese region. Notedly, the Region's Securities and Futures Commission (SFC) granted the exchange's approval ahead of sixteen other trading platforms, awaiting approval from the commission.
In one of our previous news articles, Crypto com, Bullish, and nine other trading platforms reportedly met the criteria to operate as “deemed to be licensed." Hence, these exchanges have been operating amid restrictions, pending complete approval. Meanwhile, the SFC warned that investing with the trading platforms could be risky as they are yet to meet regulatory standards.
Nature of License Approval
According to HKVAX’s official website, the exchange obtained three distinct licenses. They include Type 1 (dealing in securities), Type 7 (providing automated trading services), and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). Notably, the Type 1 and Type 7 endorsements came from the SFC. All these approvals are crucial for trading platforms intending to operate within Hong Kong jurisdictions.
With its endorsement, HKVAX will join the likes of OSL and HashKey to offer retail crypto trading services to Hong Kong. For context, OSL license approval happened in 2020, while that of HashKey was in 2022. Both occurred under an old opt-in system. Meanwhile, retail trading began in August 2023 in Hong Kong, with HKVAX becoming the first exchange to obtain license approval under the existing laws.
HKVAX Aims to Become A Leader in Hong Kong’s Virtual Asset Industry
Speaking on the operational permit approval, Dr. Anthony Ng, a Co-Founder and Chief Executive Officer (CEO) at HKVAX, remarked, “Obtaining the license affirms HKVAX and demonstrates Hong Kong's resolve to lead in the virtual asset industry. We're part of a financial landscape revolution, aiming to establish Hong Kong as the STO and RWA center for Asia and beyond.”
For context, the STO and the RWA in the CEO’s statement above meant Security Token Offering and Real World Asset tokenization, respectively. Therefore, it underscores the trading platform’s desire to become a leading entity in Hong Kong's digital market.
