HKVAX Becomes Third Licensed Crypto Exchange in Hong Kong

Hong Kong Virtual Asset Exchange (HKVAX) has become the third cryptocurrency exchange to secure a license from Hong Kong’s Securities and Futures Commission (SFC), marking a significant milestone for the city's rapidly evolving virtual asset market. HKVAX is the first exchange to be licensed under Hong Kong’s new regulatory framework, introduced two years ago to govern virtual assets.

HKVAX Secures Multiple Licenses

In a statement released on October 4, HKVAX announced that it had obtained a Type 1 license for securities trading and a Type 7 license for automated trading services. Additionally, the exchange was granted an Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) license by the SFC, further cementing its compliance with Hong Kong’s stringent financial regulations.

HKVAX offers a wide range of services, including Security Token Offerings (STO), Real-World Asset (RWA) tokenization, over-the-counter (OTC) trading, and custody services, positioning it as one of the most regulated platforms in the region.

Leadership Vision

HKVAX CEO Anthony Ng emphasized that these licenses underscore both the company’s and Hong Kong’s commitment to becoming pioneers in the virtual asset space. Ng believes that innovations in STOs and RWA tokenization will transform traditional financial markets by enhancing liquidity and creating new opportunities, aligning with Hong Kong’s goal of establishing itself as a global financial center.

Co-founder Sam Fok echoed Ng’s sentiments, noting that these licenses are just the beginning of HKVAX's expansion. He described the approval as a pivotal moment, elevating the exchange into a "comprehensive ecosystem" of services rather than merely a trading platform.

Strategic Partnerships and Ecosystem Growth

HKVAX is forging strategic partnerships with key industry players, including brokers, Money Service Operators (MSOs), Exchange-Traded Fund (ETF) issuers, stablecoin providers, and other virtual asset platforms. These collaborations are expected to foster a dynamic virtual asset ecosystem, contributing to Hong Kong's ongoing financial innovation.

Hong Kong’s Virtual Asset Regulatory Landscape

HKVAX’s approval reflects Hong Kong’s determined efforts to position itself as a leader in the global virtual asset market. The city has introduced rigorous regulations to govern cryptocurrency exchanges, which has led some global players, including Binance and HTX, to exit the market. Before HKVAX, only two local exchanges—HashKey Group and OSL—were authorized to serve retail investors.

In addition to these fully licensed exchanges, 11 platforms in Hong Kong are currently operating under a "deemed to be licensed" status, allowing them to continue operations while seeking full regulatory approval from the SFC.

With HKVAX’s licensing, Hong Kong continues to strengthen its role as a global hub for virtual assets, particularly as the city focuses on creating a secure and innovative environment for retail investors and financial institutions alike.