HKbitEX Receives Regulatory Approval-in-Principle for Virtual Asset Trading

HKbitEX Receives Regulatory Approval-in-Principle for Virtual Asset Trading

by April 1, 2024

HKbitEX, affiliated with Tykhe Capital Group Limited, has announced that it received preliminary approval from the Hong Kong Securities and Futures Commission (SFC) for Type 1 (dealing in securities) and Type 7 (providing automated trading services) licenses under the Securities and Futures Ordinance (SFO).

According to the company’s statements, this development positions Tykhe Capital Group as the first to navigate the comprehensive licensing path for virtual asset services under Hong Kong’s newly established Virtual Asset Service Provider (VASP) regime.

With these approvals, HKbitEX aims to expand its offerings to include automated trading and Over-The-Counter (OTC) services for recognised virtual assets like Bitcoin and Ethereum.

The company also plans to engage in automated trading for tokenised products, pending further SFC approvals, which could potentially enhance the liquidity in the secondary market for these assets, according to the company.

In addition, HKbitEX’s sister company, Pioneer Asset Management Limited, was previously licensed to manage and advise on virtual assets comprehensively. Pioneer has issued what is reported as Hong Kong’s first tokenised retail property fund.

According to Dr Han Gao, CEO of HKbitEX, the SFC’s provisional nod acknowledges the company’s dedication to rigorous internal controls, compliance, anti-money laundering practices, and investor protection measures.

Dr Han GaoHKbitEX

Dr Han Gao

“This license is another step forward in our journey to create a new digital finance ecosystem,”

Dr Han stated, underscoring the company’s commitment to regulatory adherence and innovation in the digital finance sector.

He also highlighted preparations for engaging with Hong Kong’s regulated stablecoin regime, aiming to incorporate stablecoins into the platform to enable instant STO settlements, which could potentially improve transaction efficiency and reduce settlement risks.

Featured image credit: Edited from Freepik