MC Group Enhances Capabilities Under SFC Type 1 License to Support Virtual Asset Trading

Magic Compass Group (hereinafter referred to as MC Group) is pleased to announce an enhancement to its existing Securities and Futures Commission (SFC) Type 1 license.

Magic Compass Group (MC Group) has secured an enhancement to its existing Securities and Futures Commission (SFC) Type 1 license, enabling the firm to offer specific virtual asset trading services, it was announced Monday (12 May).

This development underscores MC Group's commitment to providing innovative and secure solutions for clients navigating the virtual asset landscape.

The Hong Kong-based financial institution is already licensed to provide Type 1 (dealing in securities), Type 4 (advising on securities), and Type 9 (real estate investment advisory) services.

The enhancement to its Type 1 license permits MC Group to perform virtual asset dealing services for clients who maintain ongoing Type 1 business relationships, operating in accordance with the SFC's provisions.

These services are available to clients engaged in Type 1 regulated activities (dealing in securities), as defined by the SFC, and will be performed by MC Group in the manner prescribed by the commission.

All virtual asset transactions are conducted through omnibus accounts established and maintained with SFC-licensed virtual asset trading platforms, further integrating the services into a regulated and secure framework.

MC Group will be performing these services adhering to the SFC's terms and conditions for virtual asset dealing services, which includes requirements under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO).

This also includes asset segregation, regular audits, and robust cybersecurity practices to ensure optimal compliance and client protection throughout its operations.

The company's approach is focused on operating with the highest industry standards and a deep commitment to client protection.

"We are excited to introduce these expanded capabilities to our clients, offering them access to the next generation of financial products and services within a fully regulated and secure environment," said Yuri Z, operating officer at MC Group.

"Our goal is to provide clients with the seamless and innovative solutions they need to navigate the evolving virtual asset market with confidence."

With these enhanced services, clients can now trade tokens in a diverse range of real-world assets, including equities, bonds, and structured products.

These tokens are issued and managed in accordance with the SFC's guidelines for security tokens, promoting transparency and trust in the issuing process.

Moreover, clients can optimize their liquidity by using existing traditional portfolios as collateral for virtual asset positions, facilitating more flexible capital management strategies.

"We are constantly seeking ways to expand our offerings and better serve our clients' evolving financial needs," Z added.

"This enhancement to our SFC Type 1 license is a testament to that commitment and allows us to introduce advanced services such as tokenized assets and cross-margining solutions."

MC Group's services are designed to provide clients with the seamless and innovative solutions they need to navigate the evolving virtual asset market with confidence, he noted.

These services are covered by industry-standard security measures, including cold storage and insurance to protect client assets optimally.

Additionally, MC Group provides real-time proof-of-reserves using Merkle Tree verification, promoting transparency and confidence in asset management.

MC Group's operational model for this virtual asset activity is designed to align perfectly with the SFC's regulations and the requirements of the AMLO.

The company's existing Type 1 license and operational capabilities are pivotal in this setup, enabling seamless integration of virtual asset services into its existing service offerings.

This approach is focused on providing clients with optimal convenience and access to the advanced financial products they demand.

Magic Compass Group is a multi-disciplinary financial institution offering a range of services, including securities dealing, futures brokerage, investment advice, and real estate investment advisory.

The firm is fully licensed and regulated by the Hong Kong SFC and serves a diverse clientele of institutional and retail investors.

MC Group is also a member of the Hong Kong Stock Exchange (HKEx) and the Futures Exchange (HKFE).

The company has a strong track record of financial stability and adheres to the highest industry standards of security and client protection.