This landmark move positions HKVAX as the third licensed virtual asset operator in Hong Kong, following in the footsteps of OSL and HashKey.
The journey towards this achievement began in 2018 when HKVAX initiated discussions with the SFC, culminating in its formal application for licensure in 2019.
Upon final endorsement of its Type 1 and Type 7 licenses, HKVAX is poised to introduce three foundational offerings. Firstly, an Over-the-Counter (OTC) brokerage characterized by competitive spreads and robust liquidity facilitates seamless transactions between fiat currencies and virtual assets.
Secondly, an institutional-grade exchange platform will cater to advanced trading needs. Lastly, a 100% insured custody solution with stringent access controls and a clear distinction between client and house assets will reinforce trust.
This development comes on the heels of the Hong Kong Government and the SFC announcing forthcoming regulatory amendments designed to establish a resilient framework for the sustainable growth of the virtual asset industry.
Moreover, from early 2022 onwards, registered institutions and licensed corporations are mandated to collaborate exclusively with SFC-licensed virtual asset exchange platforms for pertinent trading services.
These shifts underscore Hong Kong’s dedication to nurturing financial innovations, reinforcing its commitment to the virtual asset and Web3 communities. The changes also acknowledge the escalating demand for virtual assets as diverse investors seek both returns and safeguards against economic uncertainties.
In a related stride, HashKey Exchange recently became the pioneering licensed crypto platform in Hong Kong to cater to retail users subsequent to a license upgrade.
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