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 Expanses Capabilities with SFC Type 1 License to Include Virtual Asset Trading

HONG KONG, May 16, 2025 /PRNewswire/ -- 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. This development now permits MC Group to offer specific types of virtual asset trading services to clients who maintain ongoing Type 1 securities business relationships with the firm, in accordance with the SFC's regulatory framework.

This milestone further strengthens MC Group's position as a trusted partner, supporting clients with compliant, efficient, and forward-thinking solutions for the new era of finance.

Expanded Capabilities for Clients

With the addition of virtual asset dealing services to its Type 1 license, MC Group can now provide these capabilities to clients who are engaged in Type 1 regulated activities (dealing in securities), as defined and regulated by the SFC. These services are performed in accordance with the conditions imposed by the SFC for the provision of virtual asset dealing services.

Furthermore, all virtual asset transactions are conducted by MC Group through omnibus accounts that are established and maintained with SFC-licensed virtual asset trading platforms. This helps to ensure a safer and more controlled trading environment.

In the execution of its virtual asset dealing services, Magic Compass Group operates in full alignment with the SFC's terms and conditions. This includes adherence to the requirements of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), asset segregation, regular audits, and cybersecurity practices, as specified by the commission.

Announcing Expanded Capabilities for Virtual Asset Trading

Magic Compass Group (MC Group) is pleased to announce an addition to its existing Securities and Futures Commission (SFC) Type 1 license, which now enables the firm to offer specific types of virtual asset trading services.

This expansion of capabilities allows MC Group to provide virtual asset dealing services to clients who maintain ongoing Type 1 securities business relationships with the firm, and these services are performed in accordance with the conditions imposed by the SFC for the provision of such services.

Virtual asset trading services are now covered by the Type 1 license.

Moreover, all virtual asset transactions are conducted by MC Group through omnibus accounts that are established and maintained with SFC-licensed virtual asset trading platforms. This helps to ensure a safer and more controlled trading environment.

In the execution of its virtual asset dealing services, Magic Compass Group operates in full alignment with the SFC's terms and conditions. This includes adherence to the requirements of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), asset segregation, regular audits, and cybersecurity practices, as specified by the commission.

Greater Support for Clients on Their Investment Journey

The addition of these capabilities marks a significant step in expanding the range of services that MC Group can offer to its clients.

With this expanded offering, clients of MC Group can now enjoy the following benefits:

* Access to Regulated Security Token Trading: Clients can trade tokenized real-world assets, such as equities, bonds, and structured products, in a single, seamless manner, and benefit from the efficient execution of trades, completed in accordance with the relevant legal and regulatory frameworks.

* Liquidity Optimization Through Cross-Margining: Clients can leverage their traditional portfolios to serve as collateral for their virtual asset positions, facilitating more efficient capital management strategies.

* Advanced Custody Solutions: Client assets are safeguarded with industry-standard security measures, including cold storage for digital assets and comprehensive insurance coverage.

* Enhanced Transparency with Merkle Tree Technology: Ensuring transparency is paramount. In accordance with the SFC's guidelines, Magic Compass Group provides real-time proof of reserves using Merkle Tree verification, a technology that enables the aggregation of multiple hash values to form a single hash value, which can be used to quickly and easily verify the integrity of large amounts of data. This contributes to greater confidence in asset management practices.

Magic Compass Group's Commitment to Compliance and Service Excellence

Magic Compass Group is deeply committed to operating in accordance with the highest regulatory standards and maintaining a strong focus on the safety and protection of client assets.

The firm works exclusively with SFC-licensed virtual asset trading platforms and has implemented robust internal operational controls to manage and segregate client assets.

Furthermore, Magic Compass Group is subject to regular audits by independent accounting firms to ensure compliance with the applicable SFC requirements.

In today's rapidly changing financial landscape, Magic Compass Group is continually evolving to meet the diverse needs of its clients.

With these expanded capabilities under the SFC Type 1 license and its unwavering dedication to excellence, Magic Compass Group is well-positioned to support clients in making the most of the exciting opportunities in the virtual asset market.

About Magic Compass Group

Founded in 2008, Magic Compass Group (MC Group) is a Hong Kong-based financial services firm holding a full-fledged Type 1 brokerage license from the Securities and Futures Commission (SFC).

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