Hong Kong Virtual Asset Exchange (HKVAX) Becomes Third Crypto Exchange to Receive SFC Licensing

HKVAX received Type 1 (dealing in securities) and Type 7 (providing automated trading services) virtual asset trading platform (VATP) licenses

The Hong Kong Virtual Asset Exchange (HKVAX) has become the first cryptocurrency exchange to receive licensing from the Special Administrative Region’s Securities and Futures Commission (SFC) to serve retail customers.

HKVAX received Type 1 (dealing in securities) and Type 7 (providing automated trading services) virtual asset trading platform (VATP) licenses, as well as an Anti-Money Laundering and Counter-Terrorist Financing license to operate a virtual asset trading platform.

HKVAX is among a select few to have received full licensing in Hong Kong. Cryptocurrency exchanges OSL and HashKey received licenses in 2020 and 2022, respectively, under an old opt-in system. However, retail crypto trading began in Hong Kong in August 2023.

HKVAX core service offerings include over-the-counter trading, a trading platform and comprehensive, insured custody. In addition, it specializes in security token offerings (STO) and real-world asset (RWA) tokenization. HKVAX co-founder and CEO Anthony Ng said in a statement:

HKVAX received in-principle approval from the SFC in August 2023 and is the first exchange to be licensed under the current licensing regime. Exchanges seeking licenses had until 29 February to file an application and were otherwise closed.

Sixteen companies are awaiting a decision on their VATP applications, 11 of which are already operating as “deemed to licensed,” even though the SFC posts a warning on its website discouraging people from doing business with them.