Crypto Exchange HKbitEX Bags License in Hong Kong

HKbitEX, a prominent cryptocurrency exchange based in Hong Kong, has been granted regulatory approval by the Securities and Futures Commission (SFC) to conduct licensed operations in accordance with the Securities and Futures Ordinance (SFO).

HKbitEX reaching this approval is a significant milestone for them, as their parent company, Taiji Capital Group Co Ltd, is now the first digital finance group granted a complete virtual asset license under Hong Kong’s newly implemented virtual asset trading platform operator scheme.

Implications of the Virtual Asset License to HKbitEX

According to a recent article in the local press, Hong Kong regulators have granted licenses to HKbitEX, allowing it to operate as a securities dealer (Type 1) and an automated trading services provider (Type 7). Consequently, HKbitEX can now provide users with automated trading and over-the-counter services for cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). Furthermore, the platform will offer users the ability to easily exchange their digital assets for fiat currencies.

Additionally, HKbitEX plans to offer automated trading for the company’s Security Tokens once approved by the Hong Kong Securities and Futures Commission for listing. This move aims to create a convenient, streamlined, and compliant platform for Hong Kong’s fintech sector.

According to Dr. Gao Han, Chairman of Taiji Capital and CEO of HKbitEX, the preliminary approval of a virtual asset trading platform license by the regulatory authorities for HKbitEX signifies that the company has complied with necessary regulations regarding internal controls, compliance, anti-money laundering measures, system security, and investor protection. The establishment of this platform represents a significant advancement in Taiji Capital’s efforts to build a new digital financial ecosystem.

Noteworthy is Taiji Capital’s significant contribution to HKbitEX’s regulatory approval process. Nevertheless, Pioneer Asset Management Limited, which is related to HKbitEX, has been authorized to manage the entire virtual asset portfolio. In the previous year, Pioneer pioneered the launch of Hong Kong’s initial tokenized shop real estate fund through a Security Token Offering (STO), underlining Taiji Capital’s commitment to progressing digital financial innovation.

In the meantime, the Hong Kong Securities and Regulatory Commission declared on March 1st that the deadline for submitting applications to transition licenses had passed. Platforms that have not been granted a license or have not made arrangements for the transition must halt their operations in Hong Kong by May 31st of this year.

HKbitEX’s Future Endeavours

Dr. Han suggested that apart from dealing with virtual assets, Taiji Capital is working on establishing a legal framework for a stablecoin system in Hong Kong. This means that in the future, users will have the option to trade Security Token Offerings (STO) using stablecoins, resulting in immediate settlement of both silver and currency certificates (T+0 DvP). According to Dr. Han, this will enhance transaction efficiency and reduce settlement risks.

The CEO stated that HKbitEX will persist in creating a compliant and secure business, working alongside our partner firm to foster financial sectors aligned with local economic growth.

The company intends to focus on Hong Kong’s emerging sectors, specifically in the realm of innovative technology, real estate, medical R&D, intellectual property protection, and new energy.

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2024-03-28 17:21