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Hong Kong Digital Asset Trading Group (HKbitEX) has becoming the first digital financial group to be granted a full virtual asset trading platform (VATP) license under Hong Kong's new regulatory framework.
The Hong Kong Securities and Futures Commission (HK SFC) in-principle approval covers both Type 1 (securities trading) and Type 7 (providing automated trading services) regulated activities for virtual assets. This allows HKbitEX, a subsidiary of Tai Chi Capital to offer a wider range of services to its users, including automated OTC trading, fiat deposits and withdrawals, and automated trading services for security tokens issued by Tai Chi Capital, pending full approval.
Tai Chi Capital, through its subsidiary Pioneer Asset Management, has already established itself as a pioneer in the STO space. Pioneer was the first company in Hong Kong to be licensed to manage virtual asset portfolios and launched the city's first tokenized shop real estate fund last year.
HKbitEX's VATP license approval creates a closed-loop ecosystem for Tai Chi Capital's STO projects. It allows them to offer secondary market liquidity for their STOs through HKbitEX's automated trading platform. This could significantly benefit STO issuers and investors by providing a readily accessible and efficient trading environment.
HKbitEX said it plans to leverage its expertise to support Hong Kong's growth in key areas like innovative technology, real estate, and intellectual property. This aligns with their vision of "promoting Hong Kong as an international asset management center in the new Web3 era," the company said in a statement published on Friday.
Gao Han, chairman of Tai Chi Capital and CEO of HKbitEX, emphasized their commitment to compliant and safe development.
SFC's licensing system for virtual asset trading platforms came into effect on June 1, 2023. This requires all platforms operating in Hong Kong or targeting Hong Kong investors to be licensed. Platforms that haven't received a license or secured a transition arrangement by May 31, 2024, will be forced to cease operations in Hong Kong.
