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HKVAX is the first to be licensed under the region’s new licensing regime, as 16 more exchanges wait.
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The Hong Kong Virtual Asset Exchange (HKVAX) has become the third cryptocurrency exchange to receive licensing from the Special Administrative Region’s Securities and Futures Commission (SFC) to serve retail customers. It is the third exchange to receive full licensing in Hong Kong.
HKVAX received Type 1 (dealing in securities) and Type 7 (providing automated trading services) virtual asset trading platform (VATP) licenses, as well as an Anti-Money Laundering and Counter-Terrorist Financing license to operate a virtual asset trading platform.
HKVAX is among a select few
HKVAX’s core service offerings are over-the-counter trading, a trading platform and comprehensive, insured custody. In addition, it specializes in security token offerings (STO) and real-world asset (RWA) tokenization. HKVAX co-founder and CEO Anthony Ng said in a statement:
“We’re part of a financial landscape revolution, aiming to establish Hong Kong as the STO and RWA center for Asia and beyond.”
However, HKVAX cautioned on its website, “Our trading platform and onboarding system are undergoing final preparations.”
Cryptocurrency exchanges OSL and HashKey received licenses in 2020 and 2022, respectively, under an old opt-in system. Retail crypto trading began in Hong Kong in August 2023.
HKVAX received in-principle approval from the SFC in August 2023 and is the first exchange to be licensed under the current licensing regime. Exchanges seeking licenses had until Feb. 29 to file an application and were otherwise closed.
Sixteen companies are awaiting a decision on their VATP applications, 11 of which are already operating as “deemed to licensed,” even though the SFC posts a warning on its website discouraging people from doing business with them.
Related: Hong Kong to align crypto OTC derivative rules with European standards
Hong Kong selectively leads the world
Retail investors in Hong Kong only have four cryptocurrencies to choose from, and the jurisdiction has been criticized for the slow pace of its regulatory efforts, in spite of its repeatedly proclaimed desire to become a world hub for financial technology.
Source: Hong Kong Virtual Asset Exchange
On the other hand, stablecoin legislation is being prepared. The Hong Kong Monetary Authority is a founding member of Project mBridge and operates sandboxes that many of the world’s leading financial institutions participate in.
Magazine: Mt Gox not dumping Bitcoin just yet, Hong Kong boots out crypto exchanges: Asia Express
This article first appeared at Cointelegraph.com News
