HKbitEX obtains provisional approval for Hong Kong virtual asset trading platform license
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, becoming the first fully licensed digital finance group under the new licensing regime. This demonstrates HKbitEX’s commitment to regulatory compliance and investor protection.
Hong Kong-based digital asset trading group HKbitEX has received provisional approval from the Hong Kong Securities and Futures Commission (SFC) for its virtual asset trading platform (VATP). Approvals include a Type 1 Regulated Activity License for securities trading and a Type 7 Regulated Activity License for providing automated trading services.
With this milestone, HKbitEX, a subsidiary of Tykhe Capital, becomes the first digital finance group to be formally licensed under the new virtual asset trading platform licensing regime. The company will provide automated trading and over-the-counter services for virtual assets such as Bitcoin and Ethereum, as well as compliant fiat deposit and withdrawal services.
In addition to the services currently offered, HKbitEX plans to provide automated trading services for security tokens once it receives tokenization approval from the SFC. The move aims to further improve convenience, efficiency and compliance in Hong Kong’s financial technology market.
Pioneer Asset Management Limited, a sister company of HKbitEX, became the first company to receive fund tokenization approval from the SFC last year. The company successfully launched Hong Kong’s first tokenized commercial real estate fund last September, demonstrating its commitment to innovation in the tokenization space.
HKbitEX’s provisional approval of its VATP license means that the company complies 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 environment.
Expressing his excitement about the license approval, Dr. Gao Han, Chairman of Tykhe Capital and CEO of HKbitEX, said this will be an important milestone for HKbitEX in terms of internal control, compliance and investor protection. He also highlighted the company’s commitment to building a compliant and stable ecosystem for stablecoins in Hong Kong, which will further improve transaction efficiency and reduce settlement risks.
HKbitEX is committed to pursuing a compliant and safe development path and working with its parent company and other subsidiaries to develop financial services that are closely aligned with the local economy. The company aims to capitalize on Hong Kong’s emerging growth sectors, including innovative technologies, real estate, pharmaceutical research and development, intellectual property, and renewable energy. The 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 Scheme, which came into effect on June 1, 2023, all platforms operating virtual asset businesses in Hong Kong or providing marketing services to Hong Kong investors must obtain a license from the SFC. The SFC announced that the application period for a transition agreement will end on March 1, 2024, and platforms that have not received a license or transition agreement will have until May 31, 2024 to cease operations in Hong Kong.
Tykhe Capital Group Limited, also known as Tykhe Capital, is a digital finance group focused on tokenized assets. The group provides end-to-end tokenized asset services, including virtual asset trading platforms, capital markets and asset management, Web3 SaaS and technology development. These business segments are supported by subsidiaries 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 asset management business is operated by Pioneer Asset Management Limited (Pioneer) and ON1ON Custody. Pioneer is a licensed asset management company and the first company to receive fund tokenization approval from the SFC. We have the authority to manage a portfolio 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 achieved SOC (Service Organization Control) 2 certification established by experts.
HKbitEX, a subsidiary of Tykhe Capital, has received provisional approval from the Hong Kong Securities and Futures Commission (SFC) for a virtual asset trading platform (VATP). Approvals include a Type 1 Regulated Activity License for securities trading and a Type 7 Regulated Activity License for providing automated trading services.
This milestone makes HKbitEX the first fully licensed digital finance group under Hong Kong’s new virtual asset trading platform licensing regime. The company will provide automated trading and over-the-counter services for virtual assets such as Bitcoin and Ethereum, as well as compliant fiat deposit and withdrawal services.
In addition to the services currently offered, HKbitEX plans to provide automated trading services for security tokens once it receives tokenization approval from the SFC. The move aims to further improve convenience, efficiency and compliance in Hong Kong’s financial technology market.
Pioneer Asset Management Limited, a sister company of HKbitEX, became the first company to receive fund tokenization approval from the SFC last year. The company successfully launched Hong Kong’s first tokenized commercial real estate fund last September, demonstrating its commitment to innovation in the tokenization space.
HKbitEX’s provisional approval of its VATP license means that the company complies 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 environment.
Expressing his excitement about the license approval, Dr. Gao Han, Chairman of Tykhe Capital and CEO of HKbitEX, said this will be an important milestone for HKbitEX in terms of internal control, compliance and investor protection. He also highlighted the company’s commitment to building a compliant and stable ecosystem for stablecoins in Hong Kong, which will further improve transaction efficiency and reduce settlement risks.
HKbitEX is committed to pursuing a compliant and safe development path and working with its parent company and other subsidiaries to develop financial services that are closely aligned with the local economy. The company aims to capitalize on Hong Kong’s emerging growth sectors, including innovative technologies, real estate, pharmaceutical research and development, intellectual property, and renewable energy. The 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 Scheme, which came into effect on June 1, 2023, all platforms operating virtual asset businesses in Hong Kong or providing marketing services to Hong Kong investors must obtain a license from the SFC. The SFC announced that the application period for a transition agreement will end on March 1, 2024, and platforms that have not received a license or transition agreement will have until May 31, 2024 to cease operations in Hong Kong.
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