Hong Kong’s investment management firm, Victory Securities has obtained approval to offer digital asset services to retail clients expanding the country’s number of cryptocurrency licences.
In a Nov 24 press release, the company made the announcement that it obtained a license from the Securities and Futures Commission (SFC) to offer digital asset services adding that this development makes it the first licensed corporation to offer those associated services to clients.
“Victory Securities… which has been rooted in Hong Kong for 50 years, has made significant progress in the field of virtual assets and became the first company in Hong Kong to obtain approval from the Hong Kong Securities and Futures Commission (“SFC”) to provide retail investors with A licensed corporation for virtual asset trading and advisory services.”
According to the statement, Victory Securities will integrate virtual assets with the traditional finance ecosystem and allow retail clients to participate in the model getting and trading assets seamlessly.
The company also hailed the commitment of the Hong Kong authority as it sets itself to become the destination of the International Virtual Asset Center.
Seeking to connect both branches of finance, the firm wants to create a platform where users can flexibly allocate assets and offer investment advice to retail users including periodic research reports.
In line with modern regulatory requirements to provide adequate information on products and assess user knowledge before they can invest, the company wrote that it would focus on investor education, and research and will continue to partner with regulatory agencies.
Hong Kong’s web3 revolution
Victory Securities now joins the rank of firms with retail crypto licenses in Hong Kong. Previously the regulatory nod has been given to HashKey and OSL Securities.
Hong Kong has been lauded for a positive stance toward digital assets after releasing a regulatory framework for retail markets to protect all parties in the sector.
The rules which were released on June 1 give companies a level playing field while protecting investors according to Julia Leung, the chief legal officer at the SFC while Gary Tiu, the head of regulation at OSL said the regime should be studied and replicated in other markets.
🇭🇰 Hong Kong Aims to Thrive as an International Crypto Hub Despite Global Scrutiny
The first licenses in Hong Kong have been issued to crypto companies under a new regulatory regime as the city plans to become an international crypto hub.#CryptoNewshttps://t.co/nXUhh0tpHB
— Cryptonews.com (@cryptonews) August 9, 2023
However, virtual asset exchange Bitget announced a closure of business in Hong Kong on December 13 citing market considerations as reasons why it will not pursue previous plans for a local license.
“Due to business and market-related considerations, we have decided not to apply for a Virtual Asset Trading Platform (VATP) license in Hong Kong.”
Similar efforts are being recorded in Dubai, Brazil, and Singapore as they clear up the digital asset structure to pass proper regulations like Europe’s success with the Markets in Crypto Asset (MiCA) regulation.
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