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Victory Securitiesm(8540.HK), a fully licensed securities firm with over 50 years of history, has announced that it has secured significant regulatory approval from the Securities and Futures Commission (SFC) of Hong Kong to offer two key virtual asset (VA)-related services.
The approval for discretionary account management services (DAMS) allows Victory Securities to manage customizable investment portfolios that can include spot virtual assets, VA futures, and VA options for a broad range of clients, the firm said in a statement on Monday.
Notably, Victory Securities is the first licensed broker in Hong Kong authorized to offer VA DAMS through platforms including Binance FZE and Deribit FZE, two of the world's largest VA and VA derivative exchanges by trading volume. The company aims to bridge the gap for investors hesitant due to market volatility by offering an experienced investment team and an institutional-grade risk control system that adheres strictly to clients' risk preferences and investment objectives. The DAMS service will cover asset allocation, risk assessment, and dynamic strategies with round-the-clock monitoring.
"The professionalization of the virtual asset market is a future trend. Our discretionary account management services will strictly comply with the SFC's regulatory framework, integrating quantitative analysis and market insights to create long-term value for investors," Kennix Chan, deputy CEO of Victory Securities, said.
In a further expansion of its VA service offerings, Victory Securities has also received the green light to distribute physically-settled VA-referenced structured products to professional investors. This follows its approval late last year as the first Hong Kong brokerage to distribute cash-settled VA-referenced structured products. With physically-settled products, clients of Victory Securities will receive the actual spot virtual assets upon expiry of the structured product. The company highlighted that this service significantly reduces the costs and time associated with cross-market asset conversions, providing cryptocurrency holders with a novel channel to access traditional financial products and capitalize on market volatility.
"This service significantly reduces the cost and time barriers associated with cross-market asset conversions, providing cryptocurrency holders with an innovative channel to seamlessly access traditional financial products. The flexible investment features of virtual asset-structured products also enable investors to capitalize on market volatility," Chan said.
Victory Securities has been actively aligning with the Hong Kong government's push to embrace virtual assets, continuously strengthening its compliance infrastructure. The company now boasts a comprehensive service ecosystem covering trading, asset management, and product distribution in the VA space, positioning itself as a key player in Hong Kong's virtual asset compliance landscape.
Victory Securities holds SFC licenses for Type 1, 2, 4, 6, and 9 regulated activities, offering a range of financial services including global securities trading, financing, corporate finance, and wealth management. In 2023, the firm became the first and currently only licensed entity in Hong Kong to hold virtual asset trading, advisory, and asset management service licenses issued by the SFC.
