HKbitEX Granted SFC Approval for VATP Type 1, 7 Trading

HKbitEX has achieved approval from the Securities and Futures Commission for two trading activities.

It is a remarkable accomplishment within the cryptocurrency landscape that Hong Kong’s HKbitEX, a virtual asset trading platform (VATP), recently obtained approval from the nation’s regulatory body, the Securities and Futures Commission, also known as the SFC, for the conduct of two types of trading activities.

These activities are Type 1 (dealing in securities) and Type 7 (providing automated trading services). This approval marks a pivotal move across the industry.

The Securities and Futures Ordinance (SFO) is a piece of legislation that oversees the securities and futures markets in Hong Kong. This license, which falls within the broader canopy of trading services facilitated inside the SFO, further strengthens the firm’s position within Hong Kong’s cryptography sector.

Following the implementation of the new VASP licensing regime in the country, Taiji Capital, the company’s parent company, became the first digital finance group in Hong Kong to obtain a complete virtual asset licence.

The aforementioned licensing provided a significant contribution to this achievement. In Hong Kong’s digital asset arena, this action by the VATP and its corporate parent caused a frenzy to spread throughout the country.

HKbitEX CEO Spotlights The Landmark Achievement

Dr. Gao Han, the Chief Executive Officer of HKbitEx and Chairman of Taiji Capital, emphasized the significance of HKbitEx’s clearance in Hong Kong’s VATP regulatory environment. Following this, Gao stated:

“The in-principle approval of the virtual asset trading platform license by HKbitEX indicates that HKbitEX has satisfied the regulatory requirements in terms of internal control, compliance, anti-money laundering, system security, and investor protection.”

In addition, the licensing of a virtual asset trading platform is yet another significant milestone for Taiji Capital in the process of enhancing the new digital financial ecosystem.

In addition to this, Taiji Capital is actively involved in the process of building a stablecoin ecosystem in Hong Kong that is compliant. HKbitEX, which is a subsidiary of Taiji Capital, can provide natural application scenarios for stablecoins.

This enables users to use stablecoins on the platform for short-term trading. Dr. Gao Han stated that this further entrenched the firm’s grip across the industry, enabling the settlement of assets and currency certificates, improving the efficiency of transactions, and lowering the risks associated with settlement.

HKbitEX’s sister company, Pioneer Asset Management Limited, received a license from the Securities and Exchange Commission (SFC) in 2023.

This license granted the company the authority to manage virtual asset portfolios and provide guidance on virtual assets. This was a significant accomplishment for the company.

In the latter part of the same year, Pioneer created history by releasing Hong Kong’s first tokenized retail property fund. The Securities and Futures Commission in the country permitted this activity for the first time.

This, in conjunction with the VATP licensing that was discussed before, further bolsters Taiji Capital’s holistic value proposition for security token offerings (STOs), which in turn positions the company as a pioneer in the industry.