Hong Kong, March 2024, 3 – HKbitEX (Hong Kong Digital Asset Exchange Group Co., Ltd.) has today received the approval in principle from the Hong Kong Securities and Futures Commission for Type 28 regulated activity (securities trading) and Type 1 regulated activity (providing automated trading services) Virtual Asset Trading Platform (VATP) licenses under the Securities and Futures Ordinance (SFO). HKbitEX’s parent company Taiji Capital Group Co., Ltd. (hereinafter referred to as “Taiji Capital”, “the Group”) has become the first virtual asset full-licensed digital financial group under the new virtual asset trading platform operator licensing regime.
HKbitEX can provide automated trading and over-the-counter trading services for virtual assets such as Bitcoin and Ethereum, and provide users with convenient and compliant fiat currency deposit and withdrawal services. HKbitEX will also provide automated trading services for the group's security tokens after obtaining the approval of the Hong Kong Securities and Futures Commission for the listing of tokens, further providing a convenient, efficient and compliant trading market for Hong Kong's financial technology.
HKbitEX's sister company Pioneer Asset Management Limited (Pioneer) was licensed last year to manage up to 100% of its virtual asset portfolio, and in September of the same year, it took the lead in issuing Hong Kong's first tokenized shop real estate fund STO, becoming the first company in Hong Kong to be allowed by the Securities and Futures Commission to conduct fund tokenization business. The approval in principle of the VATP license for HKbitEX means that Taiji Capital can provide automated secondary market liquidity for STO projects, completing a complete closed loop from issuance, financing, custody to automated secondary market transactions. Currently, Taiji Capital has gradually launched five STO projects, forming a rich product line.
Dr. Gao Han, Chairman of Taiji Capital and CEO of HKbitEX, said: "HKbitEX's approval in principle for a virtual asset trading platform license means that HKbitEX has met regulatory requirements in many aspects, including internal control, compliance, anti-money laundering, system security and investor protection. The virtual asset trading platform is another important milestone for Taiji Capital in improving the new digital financial ecosystem."
“Taiji Capital is also actively developing a compliant stablecoin ecosystem in Hong Kong. HKbitEX can provide a natural application scenario for stablecoins. In the future, users can use stablecoins to trade STOs on the platform, achieve instant settlement of cash and goods (T+0 DvP), improve transaction efficiency, and reduce settlement risks.” Dr. Gao Han added.
HKbitEX's compliant and secure development path
HKbitEX will continue to develop financial services closely related to local economic development with a compliant and secure development route, and work with the group company. At the same time, it will focus on Hong Kong's emerging growth areas such as innovative technology, real estate, pharmaceutical research and development, intellectual property rights and new energy, and promote Hong Kong to become an international asset management center in the new Web3 era.
After the licensing system for virtual asset trading platform operators takes effect on June 2023, 6, all platforms operating virtual asset businesses in Hong Kong or promoting services to Hong Kong investors must be licensed by the SFC. The Hong Kong SFC also announced on March 1 this year that the application period for the transitional arrangement for licenses has ended. Trading platforms that have not been licensed or have transitional arrangements must end their Hong Kong operations on May 3 this year.