Hafu Securities Secures SFC Approval for Virtual Asset Trading

In June 2024, Hafu Securities, a subsidiary of Dongfang Fortune, received authorization from the Hong Kong Securities and Futures Commission (SFC) to offer virtual asset trading services. This development marks a significant milestone in Hong Kong’s financial sector.

Hafu’s approval highlights Hong Kong’s regulatory evolution in digital assets, paving the way for institutional expansion. As part of the SFC’s updated licensing framework, Hafu can enhance access to major cryptocurrencies.

Hong Kong’s Shift Towards Institutional Crypto Adoption

Hafu Securities has been authorized by the Hong Kong SFC to offer virtual asset trading services under its expanded business licenses. The approval aligns with Hong Kong’s regulatory framework allowing more institutional players to engage in digital assets.

This action represents a potential increase in accessibility and legitimacy for virtual assets in Hong Kong. With this regulatory backing, Hafu Securities is positioned to offer trading in major cryptocurrencies, enhancing market participation.

“Under the proposals, any person who carries on business of dealing in VAs in Hong Kong, regardless of whether through a physical outlet and/or other platform, or who provides VA custodian services will have to be licensed or registered with the SFC, subject to a fit-and-proper test and other factors deemed relevant by the SFC.” — Hong Kong Securities and Futures Commission (SFC), Regulatory Authority, Hong Kong

Cautious Optimism as Market Awaits Regulatory Outcomes

Did you know? In 2023, Hong Kong’s SFC commenced licensing for crypto exchanges, beginning with Coinbase exchange and OSL, reflecting a broader trend of regulatory acceptance in digital trading markets.

According to CoinMarketCap, Bitcoin currently trades at $117,702.98 with a market cap of $2.34 trillion. The asset maintains a dominant position at 63.89% of the market. Over the past 90 days, Bitcoin has appreciated by 40.90%, reflecting a trend of increasing investor confidence.

The Coincu research team’s analysis indicates potential growth in Hong Kong’s financial landscape due to these regulatory adaptations. Brokers like Hafu Securities may increase digital asset accessibility and contribute to an evolving financial ecosystem.