HKbitEX, known formally as Hong Kong Digital Asset Trading Group Co., Ltd., was granted preliminary approval for a Virtual Asset Trading Platform (VATP) license by the Hong Kong Securities and Futures Commission (SFC). This approval encompasses Type 1 (securities trading) and Type 7 (automated trading services) regulated activities under the Securities and Futures Ordinance (SFO).
With this in-principle nod, HKbitEX is set to enhance the virtual asset trading landscape, offering both automated and over-the-counter trading solutions for digital currencies such as Bitcoin and Ethereum according to a press release by the firm. This move also paves the way for the launch of automated trading services for security tokens pending further approvals, thereby bolstering Hong Kong’s position as a hub for financial technology innovation.
A Fully Licensed Digital Financial Conglomerate
The Taiji Capital Group, standing as the ultimate beneficiary of this regulatory advancement, has emerged as the first digital finance conglomerate to secure a complete VATP license under Hong Kong’s novel virtual asset trading platform operator licensing regime. This development is poised to fortify the group’s capability to provide seamless secondary market liquidity for Security Token Offering (STO) projects, hence completing a comprehensive ecosystem encompassing issuance, financing, custody, and automated trading.
The VATP license approval also signifies HKbitEX’s compliance with stringent internal control, anti-money laundering, system security, and investor protection regulations. Moreover, Dr Gao Han, the Chairman of Taiji Capital and CEO of HKbitEX, highlighted the firm’s endeavours to cultivate a compliant stablecoin ecosystem, further enhancing transaction efficiency and mitigating settlement risks on the platform.
The announcement comes in the wake of Hong Kong’s tightened regulatory framework for virtual asset trading platforms, which mandates licensing by the SFC for platforms operating within or targeting Hong Kong investors. With the closure of the application period for license transition arrangements, the stage is set for a regulated and secure digital asset trading environment in Hong Kong, promising enhanced investor protection and market stability.