HKVAX becomes third crypto exchange licensed in Hong Kong
Hong Kong Virtual Asset Exchange (HKVAX) has secured licensing from Hong Kongs Securities and Futures Commission (SFC) to operate a virtual asset trading platform.
The approval 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 licensing
According to an Oct. 4 statement shared with CryptoSlate, HKVAX obtained a Type 1 license for securities trading and a Type 7 license for offering automated trading services. The exchange also acquired an Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) license from the SFC.
HKVAX specializes in Security Token Offerings (STO), Real-World Asset (RWA) tokenization, over-the-counter (OTC) trading, and custody services. These capabilities position it as one of the most regulated virtual asset platforms in Hong Kong.
HKVAX CEO Anthony Ng stated that these licenses reflect both the companys and Hong Kongs dedication to becoming leaders in the virtual asset space.
Ng stated that he believes STO and RWA innovations will reshape traditional financial markets by boosting liquidity and creating new opportunities. This goal aligns with Hong Kongs ambitions to solidify its standing as a global financial hub.
Similarly, Co-founder Sam Fok echoed this view, noting that the licenses are only the beginning of the firms expansion. He added that the approval elevates HKVAX from a simple exchange to a comprehensive ecosystem.
HKVAX is forming strategic partnerships with key industry players, including brokers, Money Service Operators (MSOs), Exchange-Traded Fund (ETF) issuers, stablecoin providers, and other virtual asset platforms to further its growth. These collaborations aim to foster a dynamic virtual asset ecosystem, contributing to Hong Kongs ongoing financial innovation.
Hong Kongs regulatory regime
HKVAXs approval aligns with Hong Kongs ongoing push to drive its position as a leader in the virtual asset market, especially for retail investors.
Over the years, the city has introduced strict regulations that have pushed several global exchangesincluding Binance and HTXto withdraw from the region. Notably, only two local firmsHashKey Group and OSLwere allowed to serve retail customers before HKVAXs approval.
However, the regulator has labeled 11 platforms with a deemed to be licensed status, which allows them to continue operating while they seek full approval from the SFC.
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Text source: CryptoSlate
