HKVAX Secures Full Crypto License in Hong Kong

Highlights:

• HKVAX becomes the third licensed crypto exchange in Hong Kong under new regulations.
• The exchange secured Type 1 and Type 7 licenses, plus an AMLO license.
• HKVAX aims to offer comprehensive crypto services, including OTC brokerage and custody solutions.

Hong Kong Virtual Asset Exchange (HKVAX) has received licensing from the Hong Kong 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 authorized under the virtual asset regulatory framework introduced two years ago.

HKVAX Secures Licensing to Expand Crypto Services

In an Oct. 4 statement, HKVAX announced it obtained a Type 1 license for securities trading and a Type 7 license for automated trading services from the SFC. The exchange also secured an Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) license.

With full authorization, HKVAX will provide a variety of crypto services to Hong Kong residents. These include over-the-counter (OTC) brokerage for institutional clients, a 24/7 digital asset trading platform, and a comprehensive custody solution with insurance coverage

The exchange is also eager to offer professional investors “one-stop” crypto management services, which include technical support for Security Token Offerings (STOs) and Real-World Assets (RWA) tokenization. HKVAX co-founder and CEO Dr. Anthony Ng praised the development, reaffirming the exchange’s commitment to creating a secure and compliant virtual asset ecosystem.

He stated:

“Obtaining the licence 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.”

Further, Co-founder Sam Fok shared a similar perspective, stating that the licenses mark just the beginning of the firm’s expansion. He emphasized that the approval transforms HKVAX from a basic exchange into a “comprehensive ecosystem.”

HKVAX Leads the Way in Hong Kong’s Evolving Crypto Exchange Landscape

HKVAX’s approval aligns with Hong Kong’s efforts to strengthen its position as a leader in the virtual asset market, particularly for retail investors. Over the years, strict regulations have caused several global exchanges, including Binance and HKX, to withdraw from the region.

Cryptocurrency exchanges OSL and HashKey obtained licenses in 2020 and 2022, respectively, under a previous opt-in system. Retail crypto trading officially began in Hong Kong in August 2023.

HKVAX received in-principle approval from the SFC in August 2023, making it the first exchange licensed under the new regime. Exchanges had until February 29 to submit their license applications; afterward, no new applications were accepted. Sixteen companies are pending decisions on their VATP applications, with 11 already operating as “deemed to be licensed.” Despite this, the SFC has posted a warning on its website advising people against doing business with them.

According to the statement, the licensing has enabled HKVAX to establish strategic partnerships with key industry players, including ETF and stablecoin issuers, Money Service Operators (MSOs), and other virtual asset platforms. These collaborations aim to develop a dynamic virtual asset ecosystem that supports ongoing financial innovation in Hong Kong.