Future Fintech, a financial and digital technology services provider, announced that its wholly owned Hong Kong subsidiary, Future International Securities and Futures Limited (Future Securities), has signed a commission agreement with a Hong Kong-based compliance consultant.
The consultant will assist the company in applying for a Hong Kong Type 1 Virtual Asset Service Provider (VASP) license from the Securities and Futures Commission (SFC), as well as a Type 9 Asset Management License.
This will build on Future Securities’ existing Type 1, 2 and 4 licenses in Hong Kong.
Working with Future Fintech’s Real-World Asset division, the consultant will review the company’s business model and risk management framework, and will help prepare application materials and a business plan for submission to the SFC.
The VASP license covers services involving virtual assets, such as cryptocurrency trading through electronic platforms.
The company views this step as part of its strategy to expand its financial services portfolio and engage with the virtual asset sector.
Future Securities has experience in traditional financial services, offering products including equities, bonds and funds.
Established in 2010, the firm has stated that it maintains a focus on professionalism, innovation and stability, supported by a team with market knowledge and risk management expertise.
According to the company, the decision to apply for an upgraded Type 1 VASP license reflects the potential of the virtual asset market, which has seen increasing global interest.
It also noted Hong Kong’s position as an international financial centre with a regulatory framework and market structure that support the growth of virtual assets.
If granted, the VASP license would authorise Future Securities to conduct virtual asset-related activities within a regulated framework.
The company has said it would comply with all SFC requirements, implementing robust risk management and compliance systems to support the growth of its virtual asset operations and protect investors’ interests.
Future Securities has established a dedicated team for the application process and is working with legal and compliance advisers.
The firm has also participated in industry seminars to understand regulatory developments and market trends.
Hu Li, Chief Executive Officer of Future Fintech, said:
“Upon obtaining approval for the VASP license by the Securities and Futures Commission of Hong Kong, we will be able to legally operate virtual asset-related businesses, which will enhance our reputation, strengthen customer trust, and grant us access to the virtual asset market to capitalise on the opportunities and advantages offered by Hong Kong’s well-established financial ecosystem.”
Hu concluded:
“Looking ahead, Future Securities will actively explore innovations in the virtual asset field and leverage our strength in traditional finance to build a distinctive virtual asset service platform. At the same time, we will continue to strengthen our risk management and compliance framework, while enhancing service quality and client satisfaction to contribute to the healthy development of Hong Kong’s virtual asset market.”
Featured image credit: Edited by Fintech News Hong Kong, based on image by TravelScape via Freepik
