HKVAX gets approval to offer crypto in Hong Kong

• HKVAX has moved nearer to turning into solely the third platform to obtain a VATP licence in Hong Kong.
• That is after it obtained an approval-in-principle from the Hong Kong Securities and Futures Fee (SFC)
• The SFC web site lists OSL and Hashkey as solely two VATP licensed firms.

Hong Kong Digital Asset Change (HKVAX) has acquired a discover of approval-in-principle from the Hong Kong Securities and Futures Fee (SFC).

A press release from HKVAX famous that the approval will see the platform turn out to be solely the third digital asset buying and selling platform (VATP) to be licensed by the SFC.

“We’re delighted to have acquired approval-in-principle from the SFC and stay up for making a secure and trusted surroundings for buyers in one of many world’s largest and most dynamic monetary centres,” stated Dr. Anthony Ng, co-founder and CEO of HKVAX.

In line with HKVAX, a remaining approval from the regulator will permit the corporate to offer regulated actions recognized as Kind 1 (securities choices) and Kind 7 (automated buying and selling companies) to clients. HKVAX will provide three core merchandise to customers as soon as the regulatory course of is completed – an OTC brokerage, an institutional-grade trade platform, and custody answer.

HKVAX to affix OSL and Hashkey as third VATP licence

 HKVAX’s approval-in-principle might see it be part of OSL and Hashkey because the third licensed VATP in Hong Kong. Particulars on the SFC website present that OSL acquired the primary digital belongings dealer licence in December 2020, whereas Hashkey was licensed in November 2022. 

The trail to approval for HKVAX comes on the again of the Hong Kong authorities’s push to convey into operation a new crypto framework for the digital asset trade.

Among the many adjustments has been the requirement that registered establishments and banks prolong companies to SFC-licensed crypto platforms. Companies looking for to supply digital belongings are additionally obligated to use for acceptable licences earlier than offering these companies.

Sam Fok, co-founder and COO at HKVAX stated they welcome the brand new adjustments meant to offer regulatory readability for the trade in Hong Kong. He added:

“During the last two years, we have now labored very carefully with the federal government and different stakeholders to strengthen laws. We welcome the adjustments proposed just lately by the SFC that open up digital belongings to a wider neighborhood whereas offering buyers of every type with the transparency, reliability and safety they count on. The adjustments additionally sign Hong Kong’s intent to turn out to be a worldwide digital asset hub.”

On August 7, the SFC published a warning to VATPs which can be but to get correctly licensed to not mislead customers, significantly by way of statements revealed in relation to “their intention to use for licences.” 

In line with the regulator, such bulletins are prone to “give the general public a false sense of assurance” that the VATP is compliant with SFC laws.