- HKVAX has taken a major step toward becoming the third platform to secure a VATP licence in Hong Kong.
- This follows the company receiving an approval-in-principle from the Hong Kong Securities and Futures Commission (SFC).
- The SFC’s listings currently show OSL and HashKey as the only two platforms holding VATP licences.
Hong Kong Virtual Asset Exchange (HKVAX) has been issued a notice of approval-in-principle by the Hong Kong Securities and Futures Commission (SFC).
In a press release on its website, HKVAX said the approval-in-principle positions the platform to become only the third virtual asset trading platform (VATP) licensed by the SFC.
“We are delighted to have received approval-in-principle from the SFC and look forward to creating a safe and trusted environment for investors in one of the world’s largest and most dynamic financial centres,” said Dr. Anthony Ng, co-founder and CEO of HKVAX.
HKVAX said final regulatory approval would permit it to conduct regulated activities classified as Type 1 (dealing in securities) and Type 7 (automated trading services). Once fully licensed, the platform plans to offer three core services: an over-the-counter (OTC) brokerage, an institutional-grade exchange, and a custody solution.
HKVAX set to join OSL and HashKey as a licensed VATP
HKVAX’s approval-in-principle could see it join OSL and HashKey as the third VATP licensed in Hong Kong. The SFC’s public list shows that OSL received the first digital assets broker licence in December 2020, and HashKey was licensed in November 2022.
HKVAX’s progress toward licensing comes amid the Hong Kong government’s push to implement a new regulatory framework for the virtual asset industry. Recent changes include requirements for registered institutions and banks to extend services to SFC-licensed crypto platforms and obligations for firms offering virtual asset services to obtain the appropriate licences before operating.
Sam Fok, co-founder and COO of HKVAX, said the company welcomes the regulatory updates that aim to provide clarity for the industry in Hong Kong. He added:
“Over the last two years, we have worked closely with government and industry stakeholders to strengthen regulations. We welcome the recent SFC proposals that broaden access to virtual assets while delivering the transparency, reliability and investor protections required. These changes also reflect Hong Kong’s ambition to become a global virtual asset hub.”
On August 7, the SFC issued a cautionary notice to VATPs that have not yet secured licences, warning firms not to publish misleading statements about licence applications or intentions. The regulator said such announcements could create a false impression that a platform already complies with SFC rules and urged firms to avoid giving the public unwarranted reassurance.