Hong Kong Virtual Asset VA1, 4, and 9 License Transfer Information
hong-kong-virtual-asset-licenses-va1-4-and-9
Basic Information
License plate type
License plates 1, 4, and 9
Issued Area
Hong Kong
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Hong Kong Securities and Futures Commission (SFC)
Validity period
Continuously effective
License transfer information release time
2025 January 8
price range
Contact us for negotiation
Licence Details
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detail
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License plate type
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License date
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Category 1: 2021 Category 4 and 9: 2019
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License number/validity period
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Item No.: SWT149 Valid until: June 2025, 6 (renewal status to be confirmed)
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Licence conditions
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Services only available to professional investors
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Business scope
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Provide virtual asset related asset management services and consulting services
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Other licenses
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China Securities Regulatory Commission (QFII) license
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transfer price
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Negotiable + NAV (Net asset value approximately HK$6-7M)
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Equity structure
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100% owned by a BVI holding company with a single legal entity shareholder
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Employee situation
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5 persons, including 2 responsible officers (ROs), retention is negotiable
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financial condition
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No debt, no historical fixed costs for the buyer after delivery
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Customer situation
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Fewer than 10, all of whom are qualified foreign institutional investors (QFII)
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bank account
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Bank of China and Hang Seng Bank accounts have been opened
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Office location
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Hong Kong Island, buyers need to rent a new office by themselves
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Recommended transaction process
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other information |
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FAQs
How long does the transaction process take?
The transaction timeline depends on several stages, including a one-month due diligence (DD) process following the signing of the Non-Disclosure Agreement (NDA) and Letter of Intent (LOI), submission for SFC approval and obtaining Approval in Principle (AIP), and the subsequent equity closing process. The total transaction timeline is expected to take two to three months, depending on the progress of SFC approval.
What does Due Diligence (DD) need to check?
Due diligence typically includes reviewing the company's financial status (e.g., the absence of recognized liabilities), license validity and renewal status, RO and employee qualifications, customer contracts, bank account status, and potential legal or compliance risks. The buyer must ensure that all documents are consistent with the disclosures.
How is NAV (net asset value) determined in the transfer price?
The NAV is approximately HK$6-7 million, but the specific amount needs to be verified by an independent accountant or valuation firm during due diligence, based on the company's assets, liabilities, and cash flow. The buyer should confirm the final NAV before signing the SPA.
Do existing ROs and staff have to stay?
No, the retention of the RO and staff is negotiable. If the buyer wishes to change the team, they must agree with the seller in advance and ensure that the new RO meets SFC requirements (such as experience and training) to avoid licensing compliance issues.
If major issues are discovered during due diligence, can the transaction be canceled?
Yes. If due diligence reveals significant issues (such as financial fraud or licensing risks) before the signing of the SPA, the buyer can cancel the transaction and refund the deposit in accordance with the terms of the NDA and LOI. However, if issues are discovered after the signing of the SPA, they must be resolved through negotiation according to the terms of the contract.
Is it necessary to review the scope of virtual asset business after the transaction?
The license conditions limit the provision of virtual asset services to professional investors. If there are plans to expand the scope of business (such as retail customers) after the transaction, an application for change must be submitted to the SFC, and the approval process may take several months.
Can existing customer contracts be transferred to the buyer?
The transfer of client contracts requires the client's consent. For clients with fewer than 10 existing QFII clients, individual approval may be required. If the client refuses, the buyer may face the risk of having no clients initially.These questions cover compliance, finance, operations, and risk aspects of the transaction. If you have specific concerns or require more detailed analysis, please provide further information!
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