HKbitEX, a subsidiary of Tykhe Capital, has received a Type 1 Regulated Activity License and a Type 7 Regulated Activity License for its virtual asset trading platform, making it the first fully licensed digital financial group under the new licensing regime. This marks HKbitEX’s commitment to regulatory compliance and investor protection.
HKbitEX, a Hong Kong-based digital asset trading group, has received provisional approval from the Hong Kong Securities and Futures Commission (SFC) for its Virtual Asset Trading Platform (VATP). The approval includes a regulated activity license type 1 for securities trading and a regulated activity license type 7 for the provision of automated trading services.
This milestone makes HKbitEX, a subsidiary of Tykhe Capital, the first digital financial group to receive a full license under the new virtual asset trading platform licensing regime. The company will offer automated trading and over-the-counter services for virtual assets such as Bitcoin and Ethereum, as well as compatible fiat currency deposit and withdrawal services.
In addition to its current offerings, HKbitEX plans to provide automated trading services for its security tokens once it receives approval from the SFC for tokenization. The move aims to further improve the convenience, efficiency and regulatory compliance of Hong Kong’s fintech market.
HKbitEX’s subsidiary, Pioneer Asset Management Limited, became the first company to receive SFC approval for fund tokenization last year. The company successfully launched the first tokenized commercial real estate fund in Hong Kong in September, demonstrating its commitment to innovation in the tokenization space.
The provisional approval for HKbitEX’s VATP license signifies the company’s compliance 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 landscape.
Dr. Gao Han, chairman of Tykhe Capital and CEO of HKbitEX, expressed his excitement at the approval of the license, saying it marks an important milestone for HKbitEX in terms of internal controls, compliance and investor protection. He also highlighted the company’s commitment to building a compatible and stable stablecoin ecosystem in Hong Kong, which will further improve trading efficiency and reduce settlement risks.
HKbitEX is dedicated to pursuing a compatible and secure development path by cooperating with its parent company and other subsidiaries to develop financial services closely related to the local economy. The company aims to capitalize on emerging growth areas in Hong Kong such as innovative technology, real estate, pharmaceutical research and development, intellectual property rights and renewable energy. Its ultimate goal is to establish Hong Kong as an international hub for asset management in the new Web3 era.
Under the Virtual Asset Trading Platform Licensing Regime, which came into force on 1 June 2023, all platforms operating virtual asset businesses in Hong Kong or marketing services to investors in Hong Kong must obtain licenses from the SFC. The SFC announced on 1 March 2024 that the application period for transitional arrangements has ended and platforms that have not received licenses or transitional arrangements must cease operations in Hong Kong by 31 May 2024.
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 a virtual asset trading platform, capital markets and wealth management, as well as 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 wealth management business is managed by Pioneer Asset Management Limited (Pioneer) and ON1ON Custody. Pioneer is a licensed asset management company and the first company to receive SFC approval for fund tokenization. It is authorized to manage portfolios with up to 100% virtual assets and to provide investment advice on investments in virtual assets. ON1ON Custody is a licensed trust or company service provider (TCSP) regulated by the Hong Kong Companies Registry. ON1ON Custody has received a Service Organization Control (SOC) 2 certificate established by Full text:
HKbitEX, a subsidiary of Tykhe Capital, has received provisional approval from the Hong Kong Securities and Futures Commission (SFC) for its Virtual Asset Trading Platform (VATP). The approval includes a regulated activity license type 1 for securities trading and a regulated activity license type 7 for the provision of automated trading services.
This milestone makes HKbitEX the first fully licensed digital financial group under Hong Kong’s new virtual asset trading platform licensing regime. The company will offer automated trading and over-the-counter services for virtual assets such as Bitcoin and Ethereum, as well as compatible fiat currency deposit and withdrawal services.
In addition to its current offerings, HKbitEX plans to provide automated trading services for its security tokens once it receives approval from the SFC for tokenization. The move aims to further improve the convenience, efficiency and regulatory compliance of Hong Kong’s fintech market.
HKbitEX’s subsidiary, Pioneer Asset Management Limited, became the first company to receive SFC approval for fund tokenization last year. The company successfully launched the first tokenized commercial real estate fund in Hong Kong in September, demonstrating its commitment to innovation in the tokenization space.
The provisional approval for HKbitEX’s VATP license signifies the company’s compliance 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 landscape.
Dr. Gao Han, chairman of Tykhe Capital and CEO of HKbitEX, expressed his excitement at the approval of the license, saying it marks an important milestone for HKbitEX in terms of internal controls, compliance and investor protection. He also highlighted the company’s commitment to building a compatible and stable stablecoin ecosystem in Hong Kong, which will further improve trading efficiency and reduce settlement risks.
HKbitEX is dedicated to pursuing a compatible and secure development path by cooperating with its parent company and other subsidiaries to develop financial services closely related to the local economy. The company aims to capitalize on emerging growth areas in Hong Kong such as innovative technology, real estate, pharmaceutical research and development, intellectual property rights and renewable energy. Its ultimate goal is to establish Hong Kong as an international hub for asset management in the new Web3 era.
Under the Virtual Asset Trading Platform Licensing Regime, which came into force on 1 June 2023, all platforms operating virtual asset businesses in Hong Kong or marketing services to investors in Hong Kong must obtain licenses from the SFC. The SFC announced on 1 March 2024 that the application period for transitional arrangements has ended and platforms that have not received licenses or transitional arrangements must cease operations in Hong Kong by 31 May 2024.
Image source: Shutterstock