"HKVAX Secures License: Boost for Hong Kong’s Crypto Hub"
"HKVAX's New License: Fueling Hong Kong's Ambitious Crypto Vision!"
Hong Kong has made significant progress in its efforts to become a global leader in the virtual asset industry by issuing its third cryptocurrency trading platform license to the Hong Kong Virtual Asset Exchange (HKVAX). This license, granted by the Securities and Futures Commission (SFC), allows HKVAX to offer over-the-counter (OTC) trading, digital asset exchange services, and custody solutions with insurance coverage. Moreover, HKVAX focuses on security token offerings (STOs) and real-world asset (RWA) tokenization, key areas of innovation in the cryptocurrency space
HKVAX Joins OSL and HashKey as Licensed Crypto Exchanges
HKVAX is the third exchange to receive full licensing in Hong Kong, following earlier approvals for OSL and HashKey. This move further cements Hong Kong’s commitment to nurturing the growth of the virtual asset industry, particularly by providing a clear regulatory framework that encourages both retail and institutional investors. Anthony Ng, co-founder and CEO of HKVAX, emphasized that this license confirms Hong Kong’s ambition to establish itself as a hub for STOs and RWA tokenization in Asia
Regulatory Framework and Future Approvals
Hong Kong’s regulatory framework for crypto trading platforms was formally introduced in June 2023 to help expand the market to retail investors and attract more crypto businesses to the city. However, the stringent regulations have been met with some criticism, particularly from local lawmakers, who argue that the rules may deter global exchanges from entering the Hong Kong market
The SFC has also revealed that 11 more platforms are currently under review, with plans to issue more licenses by the end of 2024. Some of these platforms have been flagged for failing to meet regulatory standards, especially concerning custody of client assets and cybersecurity measures
Future Outlook
HKVAX’s entrance into the market is expected to inject fresh energy into Hong Kong’s ambitions to lead the virtual asset space. While the regulatory framework has seen a slow start, this latest development suggests that more exchanges could soon receive licenses, further boosting the city’s status as a global crypto hub.
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