TechFlow news: The Hong Kong Virtual Asset Exchange (HKVAX) has recently received in-principle approval from the Securities and Futures Commission of Hong Kong (SFC) to conduct regulated activities under Type 1 (dealing in securities) and Type 7 (providing automated trading services). It will become the third virtual asset trading platform approved in Hong Kong.
Lawrence Fok, co-founder and chief operating officer of HKVAX, revealed that the company has spent three years on the licensing application process. They expect it will take at least another six months before obtaining the formal license, after which they plan to launch a trading platform and over-the-counter trading services. Whether or not security tokens will be offered in the future depends on regulatory guidelines.
To support business expansion, HKVAX has completed multiple funding rounds since 2020 and brought in several Hong Kong-based family offices and investors as shareholders. CEO Wilson Ng said the firm plans to further collaborate with institutional investors including brokerage firms and asset management companies, aiming to attract them onto the HKVAX platform.
Ng believes that the Hong Kong government's supportive stance toward becoming a global virtual asset hub is meeting industry demand. As more insurance companies participate, insurance premiums for virtual assets have begun to decline. He expects that once HKVAX launches its custody services, it will draw greater interest from retail investors.
