- HKVAX plans to enter the security token offerings market.
- The exchange would continue to engage with key investors in its next fundraising rounds.
The Hong Kong Virtual Asset Exchange (HKVAX) has received an in-principle clearance from the Securities and Futures Commission (SFC) to conduct virtual asset trading in accordance with Hong Kong’s securities regulations.
To conduct Type 1 and Type 7 regulated operations, HKVAX reported on August 11 that it had secured “approval-in-principle” from the SFC. According to the release, the platform now has two licenses: Type 1 for dealing with securities on its digital asset trading platform and Type 7 for offering automated trading services to individual users and institutional investors.
The statement details HKVAX’s plans to enter the security token offerings market in order to capitalize on the potential for web3 investments. The exchange has said that once it obtains final certification, it would provide institutional-grade exchange platform, insured custody solution, and OTC brokerage that enables customers to trade between fiat and digital assets.
Expanding Product Offerings
Moreover, HKVAX co-founder and CEO Anthony Ng said in the statement that the exchange would continue to engage with key investors in its next fundraising rounds and increase its product offerings in Hong Kong as it expands.
The news of HKVAX’s launch follows the launch of retail cryptocurrency trading in Hong Kong by HashKey and OSL. Both companies made history on August 3 when they became the first to be granted permission to provide cryptocurrency trading services in Hong Kong.
Post crypto firm crashes last year, Hong Kong’s authorities have turned their attention to crypto. SFC CEO Julia Leung Fung-yee stated on June 24 that cryptocurrency trading is a crucial aspect of the virtual asset ecosystem. Also, Leung said in her address that traders would be safeguarded under the new licensing framework for virtual asset service providers.
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