HONG KONG, March 28, 2024 /PRNewswire/ — HKbitEX (Hong Kong Digital Asset Ex Limited) has received the approval-in-principle for the Virtual Asset Trading Platform Type 1 (dealing in securities) and Type 7 (providing automated trading services) regulated activities under the Securities and Futures Ordinance (SFO) from the Hong Kong Securities and Futures Commission (SFC). Tykhe Capital Group Limited (“Tykhe Capital“, the “Group“), the parent company of HKbitEX, has become the first digital finance group to obtain full virtual asset licences under the new VASP licensing regime in Hong Kong.
HKbitEX can provide automated trading and over-the-counter (OTC) services for virtual assets such as Bitcoin and Ethereum, together with a convenient and compliant virtual asset-to-fiat conversion solutions. Upon receipt of SFC’s approval for token listings, HKbitEX will also provide automated trading for the Group’s tokenized products (security tokens), further enabling a secondary market with unparalleled liquidity.
Pioneer Asset Management Limited (“Pioneer“), a sister company of HKbitEX, was licensed in 2023 to manage up to 100% of virtual asset portfolio and advise on virtual assets. In September 2023, Pioneer issued Hong Kong’s first tokenized retail property fund (STO), the first in Hong Kong permitted by the SFC to conduct fund tokenization activities. The approval-in-principle for the VATP licence is a testament to Tykhe Capital’s one-stop value proposition for STOs, from issuance, distribution, custody to automated secondary markets. At present, Tykhe Capital has a well-constructed product pipeline with 5 STOs in preparation for launch.
Dr. Gao Han, CEO of HKbitEX, said: “SFC’s approval-in-principle for the VATP licences signifies regulators’ recognition across HKbitEX’s internal controls, compliance, anti-money laundering and efforts in investor protection. The VATP licence underpins another important milestone in Tykhe Capital’s creation of a new digital finance ecosystem.”
“Tykhe Capital is also actively preparing for the Hong Kong’s regulated stablecoin regime. HKbitEX provides a natural application scenario for stablecoins by enabling automated trading and instantaneous settlement (T+0 DvP) of STOs with stablecoins, improving transaction efficiency and reducing settlement risks.” Dr. Gao Han added.
HKbitEX will continue its development with focus on compliance and technological security, collaborating with its Group companies on financial services targeting industries and verticals that are closely connected to the economy of Hong Kong and the Greater China. Meanwhile, HKbitEX will focus on supporting new growth sectors across innovative technologies, pharmaceuticals, intellectual property and new energy, promoting Hong Kong as the international asset management hub in the Web3 era.
With the VASP licensing regime taking effect since 1 June 2023, all VASPs with Hong Kong operations or marketing to Hong Kong investors must be licensed by the SFC. The SFC also announced on 1 March 2024 that the window for pre-existing VASPs to submit a license application has been closed. If a platform has not been licensed or deemed to be licensed, it must close its Hong Kong businesses by 31 May 2024.
About HKbitEX and Tykhe Capital Group
Tykhe Capital Group Limited (“Tykhe”, the Group) carries the mission to shape the digital finance landscape with tokenized assets through Web3 technology. We provide end-to-end services throughout the tokenization journey covering virtual asset exchange platform, capital markets and wealth management and Web3 R&D. The relevant services are supported by our subsidiaries with regulated or compliant Web3 infrastructure.
Our virtual asset trading platform business is acting through Hong Kong Digital Asset EX Limited (“HKbitEX”).
Our capital markets and wealth management business is acting through Pioneer Asset Management Limited (“Pioneer”) and ON1ON Limited (“ON1ON Custody”). Pioneer is a licensed asset management company and the first licensee permitted by the Hong Kong SFC to conduct fund tokenization businesses. It is capable of advising on virtual assets and managing 100% virtual asset portfolios.
ON1ON Custody is a holder of the Trust or Company Service Provider (TCSP) license issued by the Hong Kong Company Registry. Its service has acquired the Service Organization Controls Type 2 (SOC2) standard developed by the American Institute of Certified Public Accountants (AICPA) and covered by virtual asset insurance.
Our Web3 R&D business is acting through Atom 8 Limited (“Atom 8”). Atom 8 is the technical arm of Tykhe, which offers Web3 SaaS solution to traditional financial institutions, including but not limited to banks and brokers, via infrastructure enablement.
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