The Securities and Futures Commission (SFC) of Hong Kong has granted the Virtual Asset Trading Platform (VATP) license to Hong Kong Virtual Asset Exchange (HKVAX), making it the third platform to receive this approval. HKVAX has also obtained Type 1 (dealing in securities) and Type 7 (providing automated trading services) licenses, further solidifying its compliance with the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO).
This milestone allows HKVAX to expand its services beyond over-the-counter (OTC) trading, platform trading, and custodial solutions. The exchange will focus on security token offerings (STOs) and real-world asset (RWA) tokenization, aiming to deliver comprehensive virtual asset financial services.
Core Business Focus and Strategic Direction
HKVAX aims to provide an integrated suite of digital asset services, targeting both individual and institutional clients. The platform’s offerings are designed to enhance Hong Kong’s fintech ecosystem by introducing innovative and compliant financial products.
The management team emphasizes that STO and RWA tokenization will play a critical role in modernizing traditional finance. By improving asset liquidity and creating new financing channels, HKVAX intends to support both investors and issuers.
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Leadership Insights on Market Development
CEO and Co-Founder Wai Leung Ng views the license as a endorsement of HKVAX’s operational standards and strategic vision. He stated that the company is committed to establishing Hong Kong as a leading hub for security tokens and tokenized real-world assets in Asia and beyond.
Ng believes that tokenization can revitalize traditional financial markets by enhancing liquidity and creating more opportunities for capital raising and investment.
CTO and Co-Founder Shing Lau highlighted the technical infrastructure supporting the exchange. The platform is built with a high-compatibility system that supports internal operations and external partners. Key components include:
- A robust trade matching engine
- An efficient settlement system
- A unified asset management model
- Advanced blockchain technology
- A multi-layered cybersecurity framework
COO and Co-Founder Siu Leung Hok noted that licensing is just the beginning. HKVAX aims to offer end-to-end solutions covering tokenization, issuance, trading, and custody—all within a secure and efficient ecosystem.
Building a Digital Asset Alliance
HKVAX is actively forming a digital asset alliance with key players in the financial industry, including:
- Securities brokers
- Money service operators (MSOs)
- ETF issuers
- Stablecoin providers
- Other virtual asset platforms and quality project teams
This collaboration aims to raise industry standards and promote regulatory compliance while delivering diverse and efficient services to users.
The exchange plans to continue working closely with regulators to ensure its operations align with legal requirements and best practices.
Frequently Asked Questions
What is a VATP license?
A Virtual Asset Trading Platform (VATP) license is issued by the Hong Kong SFC to platforms that meet strict regulatory standards for security, compliance, and operational integrity. It allows exchanges to offer regulated virtual asset trading services.
What are STOs and RWA?
Security Token Offerings (STOs) involve digital tokens that represent ownership of real assets. Real-World Asset (RWA) tokenization refers to converting physical or financial assets into digital tokens on a blockchain, enabling fractional ownership and easier transfer.
How does HKVAX ensure security?
HKVAX uses a multi-tier security architecture that includes advanced blockchain technology, a unified asset management system, and robust cybersecurity measures to protect user assets and data.
Who can use HKVAX services?
The platform serves both individual and institutional clients, including brokers, asset issuers, and financial service providers looking to engage in tokenized asset trading and related services.
What is the significance of HKVAX’s licensing?
As the third SFC-licensed VATP, HKVAX reinforces Hong Kong’s position as a regulated and innovative virtual asset market, boosting investor confidence and industry growth.