The Securities and Futures Commission (SFC) of Hong Kong has issued an in-principle approval to the Hong Kong Virtual Asset Exchange (HKVAX) to establish and operate a virtual asset trading platform in accordance with the securities laws of the region, media reports said.
On August 11th, HKVAX made an announcement confirming that it had received an “approval-in-principle” from the SFC, allowing the exchange to conduct regulated activities falling under Type 1 and Type 7 classifications. A Type 1 license authorizes the platform to operate a digital asset trading platform catering to securities, while a Type 7 designation enables the company to provide automated trading services to both retail users and institutional investors.
The release emphasized that HKVAX’s aspirations involve the introduction of a product category named security token offerings, a strategic move to harness investment opportunities within the realm of Web3.
After obtaining the final approval, the exchange disclosed plans to extend services encompassing over-the-counter (OTC) brokerage, enabling users to trade between conventional currency and digital assets, an exchange platform tailored for institutional clientele, and a custody solution backed by insurance.
Anthony Ng, the co-founder and CEO of HKVAX, underlined in the announcement that the exchange’s evolution will entail a continual expansion of its product suite within the Hong Kong market, accompanied by strategic collaborations with investors for forthcoming funding rounds.
