HKbitEX Receives Provisional Approval for Virtual Asset Trading Platform License in Hong Kong
HKbitEX, a subsidiary of Tykhe Capital, has been granted a Type 1 regulated activity license and a Type 7 regulated activity license for its virtual asset trading platform, making it the first fully licensed digital financial group under the new licensing regime. This marks HKbitEX’s commitment to regulatory compliance and investor protection.
HKbitEX, a digital asset trading group based in Hong Kong, has obtained provisional approval from the Hong Kong Securities and Futures Commission (SFC) for its virtual asset trading platform (VATP). The approval includes a Type 1 regulated activity license for securities trading and a Type 7 regulated activity license for the provision of automated trading services.
This milestone makes HKbitEX, a subsidiary of Tykhe Capital, the first digital financial group to receive a full license under the new virtual asset trading platform licensing regime. The company will offer automated trading and over-the-counter services for virtual assets such as Bitcoin and Ethereum, as well as compliant fiat currency deposit and withdrawal services.
In addition to its current offerings, HKbitEX plans to provide automated trading services for its security tokens once it obtains approval from the SFC for tokenization. This move aims to further enhance the convenience, efficiency, and regulatory compliance of Hong Kong’s financial technology market.
HKbitEX’s sister company, Pioneer Asset Management Limited, became the first company to receive approval from the SFC for fund tokenization last year. The company successfully launched Hong Kong’s first tokenized commercial real estate fund in September, demonstrating its commitment to innovation in the tokenization space.
The provisional approval for HKbitEX’s VATP license signifies the company’s compliance with regulatory requirements in areas such as internal controls, anti-money laundering measures, system security, and investor protection. It also highlights the importance of virtual asset trading platforms in the evolving digital financial landscape.
Dr. Gao Han, Chairman of Tykhe Capital and CEO of HKbitEX, expressed his excitement about the license approval, stating that it marks a significant milestone for HKbitEX in terms of internal controls, compliance, and investor protection. He also emphasized the company’s commitment to building a compliant and stable ecosystem for stablecoins in Hong Kong, which will further enhance trading efficiency and reduce settlement risks.
HKbitEX is dedicated to pursuing a compliant and secure development path, collaborating with its parent company and other subsidiaries to develop financial services closely aligned with the local economy. The company aims to capitalize on emerging growth areas in Hong Kong, such as innovative technologies, real estate, pharmaceutical research and development, intellectual property rights, and renewable energy. Its ultimate goal is to establish Hong Kong as an international asset management center in the new Web3 era.
Under the virtual asset trading platform licensing regime, which came into effect on June 1, 2023, all platforms operating virtual asset businesses in Hong Kong or marketing services to Hong Kong investors are required to obtain licenses from the SFC. The SFC announced on March 1, 2024, that the application period for transitional arrangements had ended, and platforms that did not receive licenses or transitional arrangements must cease operations in Hong Kong by May 31, 2024.
Tykhe Capital Group Limited, also known as Tykhe Capital, is a digital financial group focused on tokenized assets. The group provides end-to-end tokenized asset services, including a virtual asset trading platform, capital markets and wealth management, and Web3 SaaS and technology development. These business segments are supported by subsidiary companies that operate under regulatory oversight and compliance.
The virtual asset trading platform business is operated by HKbitEX, a subsidiary of Tykhe Capital. The capital markets and wealth management business are operated by Pioneer Asset Management Limited (Pioneer) and ON1ON Custody. Pioneer is a licensed asset management company and the first company to receive approval from the SFC for fund tokenization. It is authorized to manage portfolios with up to 100% virtual assets and provide investment advice on virtual asset investments. ON1ON Custody is a licensed trust or company service provider (TCSP) regulated by the Hong Kong Companies Registry. ON1ON Custody has obtained the Service Organization Control (SOC) 2 certification established byFull Text:
HKbitEX, a subsidiary of Tykhe Capital, has received provisional approval from the Hong Kong Securities and Futures Commission (SFC) for its virtual asset trading platform (VATP). The approval includes a Type 1 regulated activity license for securities trading and a Type 7 regulated activity license for the provision of automated trading services.
This milestone makes HKbitEX the first fully licensed digital financial group under the new virtual asset trading platform licensing regime in Hong Kong. The company will offer automated trading and over-the-counter services for virtual assets such as Bitcoin and Ethereum, as well as compliant fiat currency deposit and withdrawal services.
In addition to its current offerings, HKbitEX plans to provide automated trading services for its security tokens once it obtains approval from the SFC for tokenization. This move aims to further enhance the convenience, efficiency, and regulatory compliance of Hong Kong’s financial technology market.
HKbitEX’s sister company, Pioneer Asset Management Limited, became the first company to receive approval from the SFC for fund tokenization last year. The company successfully launched Hong Kong’s first tokenized commercial real estate fund in September, demonstrating its commitment to innovation in the tokenization space.
The provisional approval for HKbitEX’s VATP license signifies the company’s compliance with regulatory requirements in areas such as internal controls, anti-money laundering measures, system security, and investor protection. It also highlights the importance of virtual asset trading platforms in the evolving digital financial landscape.
Dr. Gao Han, Chairman of Tykhe Capital and CEO of HKbitEX, expressed his excitement about the license approval, stating that it marks a significant milestone for HKbitEX in terms of internal controls, compliance, and investor protection. He also emphasized the company’s commitment to building a compliant and stable ecosystem for stablecoins in Hong Kong, which will further enhance trading efficiency and reduce settlement risks.
HKbitEX is dedicated to pursuing a compliant and secure development path, collaborating with its parent company and other subsidiaries to develop financial services closely aligned with the local economy. The company aims to capitalize on emerging growth areas in Hong Kong, such as innovative technologies, real estate, pharmaceutical research and development, intellectual property rights, and renewable energy. Its ultimate goal is to establish Hong Kong as an international asset management center in the new Web3 era.
Under the virtual asset trading platform licensing regime, which came into effect on June 1, 2023, all platforms operating virtual asset businesses in Hong Kong or marketing services to Hong Kong investors are required to obtain licenses from the SFC. The SFC announced on March 1, 2024, that the application period for transitional arrangements had ended, and platforms that did not receive licenses or transitional arrangements must cease operations in Hong Kong by May 31, 2024.
Image source: Shutterstock
