In a recent announcement, HKVAX has become one of the very few and limited licensed VTA trading platforms operating in its location. It’s a historic event that signifies the next phase of the digital asset market in Hong Kong and demonstrates the city is determined to be a hub for a regulated Fintech industry.
The licensing of HKVAX by the Securities and Futures Commission (SFC) illustrates a shift in Hong Kong towards becoming one of Asia’s foremost centers for crypto and blockchain.
Being the third entity to receive analogous license, recognition of HKVAX is indicative of increased trust regarding the stability and viability of VA trading platforms functioning within the Hong Kong legal environment.
HKVAX Secures Landmark Virtual Asset Trading Platform License
Hong Kong Virtual Asset Exchange Limited’s virtual asset trading platform HKVAX has reached a major milestone in the world of cryptocurrency.
According to a statement on the SFC’s website, the Securities and Futures Commission of Hong Kong gave the HKVAX a VATP license, as already the third licensed virtual currency platform in Hong Kong. The development is an important step towards the legitimation of the virtual asset trading industry in Hong Kong.
The newly licensed platform is now going to be implementing a comprehensive suite of services, far beyond the usual over the counter (OTC) trading and custody services.
At the forefront of the evolving digital asset landscape, HKVAX announced its intention to provide security token (STO) and real-world asset tokenization (RWA) services. It is this strategic move that fits well with the platform’s aspirations to help Hong Kong become the main center for STO and RWA in Asia, and at times globally.
HKVAX has made significant strides by obtaining two key licenses from the SFC: In order to trade in securities, he held a Type 1 license, and was licensed to provide automated trading services (Type 7). The platform has also obtained a VATP license, as required by the Anti-Money Laundering and Counter Terrorist Financing Ordinance (AMLO).
The platform has been able to secure these regulatory approvals, which serve to embolden its resolve to continue to operate in a fully principled legal environment that resonates with and pleases institutional investors, regulatory bodies, and similar institutions.
Building a Collaborative Virtual Asset Ecosystem
HKVAX is establishing a virtual asset alliance with strategic partners in a pro-active move to foster ecosystem development. Brokers, MSOs, ETF providers, stablecoin developers, virtual asset platforms, and project development teams are all part of this partnership.
With its cooperation, it set out to foster the development of a thriving virtual asset ecosystem and importantly, given Hong Kong’s status as a pioneer in financial innovation, contribute meaningfully to further such development in Hong Kong.
The aim of HKVAX is not simply to increase its position into the market, but rather it also aims at enhancing the wider growth and maturation of Hong Kong’s virtual asset industry through the creation and fostering of partnerships. The collaborative is a way to play the part of city ambitions to become the lead cryptocurrency buck and explains HKVAX’s willingness to to be part of the development.
Following licensing of HKVAX, it has committed to staying close with regulators to drive industry standards higher. Responsible innovation is apparent from company focusing on the provision of more diverse and efficient services while honoring all regulations.
Such an approach is likely to reassure further investors and regulators of the security of the platform, laying the groundwork for virtual assets to become better established in Hong Kong’s financial markets.