HKVAX Secures License to Serve Retail Crypto Traders in Hong Kong

• HKVAX joins two other Hong Kong exchanges that have recently received full authorization.
• The exchange excels at tokenizing real-world assets (RWAs) and security token offerings.

The Securities and Futures Commission (SFC) of the Special Administrative Region has granted licenses to three cryptocurrency exchanges, among them is the Hong Kong Virtual Asset Exchange (HKVAX), allowing it to service retail consumers. It joins two other Hong Kong exchanges that have recently received full authorization.

The HKVAX website did provide a warning, though that the trading platform and onboarding system are going through final preparations. In 2020 and 2022, respectively, crypto exchanges OSL and HashKey were granted licenses under an old opt-in procedure. In August 2023, retail cryptocurrency trading was started in Hong Kong.

Multiple Offerings

In addition to an AML/CFT license, HKVAX has Type 1 and Type 7 virtual asset trading platform (VATP) licenses. Which allow it to trade in securities and provide automated trading services, respectively.

Over-the-counter trading, a trading platform, and comprehensive, insured custody are the key services offered by HKVAX. It also excels at tokenizing real-world assets (RWAs) and security token offerings (STOs).

In August 2023, HKVAX became the first exchange to be registered under the current licensing framework after receiving in-principle approval from the SFC.  All exchanges who were interested in applying for a license were required to do so by February 29th.

Around 11 of the sixteen businesses that have applied for VATPs are now functioning as “deemed to licensed,” despite a warning from the SFC that discourages customers from doing business with them.

Although Hong Kong has often stated its intention to become a global center for financial technology, the city-state has been criticized for its sluggish regulatory efforts and the fact that retail investors in the territory only have access to four cryptocurrencies.

Highlighted Crypto News Today:

CleanSpark Boosts Hashrate by 187% in a Year, Expands Mining Capacity