HKbitEX Receives Principle Approval for Hong Kong Virtual Asset Exchange Licenses

·

HKbitEX Secures Principle Approval for Hong Kong Type 1 and Type 7 Virtual Asset Exchange Licenses

The Hong Kong Securities and Futures Commission (SFC) has granted principle approval to HKbitEX (Hong Kong Digital Asset Exchange Group Limited) for a dual-category virtual asset trading platform (VATP) license under the Securities and Futures Ordinance (SFO). The approval covers Type 1 regulated activity (dealing in securities) and Type 7 regulated activity (providing automated trading services). This milestone positions Tai Chi Capital Group Limited ("Tai Chi Capital" or the "Group"), the parent company of HKbitEX, as the first fully licensed digital financial group under Hong Kong’s new virtual asset exchange licensing regime.

This approval marks a pivotal step in establishing a compliant, secure, and efficient digital asset ecosystem in Hong Kong. With the green light from the SFC, HKbitEX is now authorized to offer automated trading and over-the-counter (OTC) services for major virtual assets such as Bitcoin and Ethereum, along with seamless fiat on- and off-ramping solutions for users.

👉 Discover how regulated crypto platforms are shaping the future of digital finance.

Building a Full-Cycle Digital Asset Ecosystem

Once HKbitEX obtains formal SFC approval for token listing, it will expand its services to include automated trading for security tokens (STOs) issued by its affiliated companies. This integration completes a comprehensive lifecycle — from issuance and fundraising to custody and secondary market liquidity — all within a regulated framework.

This end-to-end capability is already being realized through Pioneer Asset Management Limited, a sister company of HKbitEX. In 2023, Pioneer became the first firm in Hong Kong approved by the SFC to manage portfolios with up to 100% virtual asset exposure. That same year, it launched Hong Kong’s first tokenized retail property fund, setting a precedent in asset tokenization.

With HKbitEX’s principle approval, Tai Chi Capital now offers a fully integrated solution: Pioneer handles asset issuance and fund management, ON1ON Custody ensures secure digital asset custody, and HKbitEX provides a compliant secondary market for trading. To date, the group has successfully launched five STO projects, demonstrating strong product diversification and market demand.

Strengthening Investor Protection and Compliance Standards

Dr. Han Gao, Chairman of Tai Chi Capital and CEO of HKbitEX, emphasized the significance of regulatory alignment:

“The principle approval for our virtual asset trading platform reflects our robust internal controls, compliance infrastructure, anti-money laundering protocols, system security, and investor protection measures. This is another major milestone in building a sustainable digital financial ecosystem.”

The SFC’s stringent licensing requirements ensure that only platforms with mature risk management frameworks can operate in Hong Kong. By meeting these standards, HKbitEX reinforces trust among institutional and retail investors alike.

Advancing Stablecoin Integration in Hong Kong’s Financial Infrastructure

Beyond spot and STO trading, Tai Chi Capital is actively shaping Hong Kong’s compliant stablecoin ecosystem. As Dr. Gao noted, HKbitEX provides a natural use case for stablecoins:

“Users will soon be able to trade security tokens using stablecoins on our platform, enabling instant settlement (T+0 DvP) — significantly improving transaction efficiency and reducing counterparty risk.”

This move aligns with broader efforts by the Hong Kong Monetary Authority (HKMA) to explore regulated stablecoin frameworks. Integrating stablecoins into compliant trading platforms like HKbitEX could accelerate the adoption of blockchain-based settlement in traditional finance.

👉 See how next-generation trading platforms are integrating stablecoins for faster settlements.

Powering Hong Kong’s Web3 Ambitions

HKbitEX’s strategy extends beyond digital assets. The group is strategically aligning with key growth sectors in Hong Kong’s economy — including innovative technology, real estate, biotech R&D, intellectual property, and new energy — to tokenize real-world assets (RWAs) and unlock new financing channels.

By bridging traditional finance with blockchain innovation, Tai Chi Capital aims to position Hong Kong as a leading global hub for digital asset management in the Web3 era.

Regulatory Timeline and Market Implications

Hong Kong’s VATP licensing regime took effect on June 1, 2023, requiring all platforms operating in or marketing to Hong Kong investors to obtain an SFC license. The transition period ended on March 1, 2024, and unlicensed platforms must cease operations by May 31, 2024.

This regulatory clarity has created a competitive advantage for compliant players like HKbitEX. As global regulators increase scrutiny on crypto platforms, Hong Kong’s balanced approach — fostering innovation while protecting investors — is attracting serious institutional interest.

Core Business Divisions of Tai Chi Capital

The Group operates through three main business pillars, each supported by licensed or compliant subsidiaries:

1. Virtual Asset Exchange

Operated by HKbitEX, this arm provides a regulated marketplace for virtual asset trading, with a focus on security, compliance, and user experience.

2. Capital Markets & Wealth Management

Led by Pioneer Asset Management and ON1ON Custody:

3. Web3 SaaS & Technology Development

Driven by Atom 8, the Group’s tech division, which offers Web3 infrastructure solutions to traditional financial institutions such as banks and brokerages. These services enable legacy firms to integrate blockchain capabilities without building in-house systems.

Frequently Asked Questions (FAQ)

Q: What does "principle approval" mean for HKbitEX?
A: Principle approval from the SFC means that HKbitEX has met all key regulatory requirements for operating a virtual asset trading platform. Final licensing will follow upon completion of remaining formalities, such as system audits and listing approvals.

Q: Can retail investors use HKbitEX?
A: Yes. Once fully licensed, HKbitEX will serve both retail and institutional clients, offering compliant access to virtual assets and tokenized securities under SFC oversight.

Q: What are security tokens (STOs), and why do they matter?
A: Security tokens represent ownership in real-world assets like real estate or funds, recorded on a blockchain. They offer greater liquidity, transparency, and fractional ownership compared to traditional securities.

Q: How does HKbitEX ensure user fund security?
A: Through its affiliate ON1ON Custody, which uses cold storage solutions, multi-signature wallets, SOC 2 compliance, and insurance coverage to protect digital assets.

Q: Will HKbitEX support stablecoin trading?
A: Yes. The platform plans to integrate stablecoins as a settlement layer for STO transactions, enabling faster, lower-cost trades with reduced counterparty risk.

Q: What role does Hong Kong play in the global Web3 landscape?
A: With clear regulations, strong financial infrastructure, and government support for innovation, Hong Kong is emerging as Asia’s leading hub for compliant Web3 development and digital asset finance.

👉 Learn how compliant crypto exchanges are driving institutional adoption worldwide.

Conclusion

HKbitEX’s principle approval marks a transformative moment for Hong Kong’s digital finance sector. As part of Tai Chi Capital’s integrated ecosystem — spanning issuance, custody, wealth management, and trading — the platform is poised to lead the next wave of financial innovation.

By combining regulatory rigor with technological advancement, HKbitEX is not just building a crypto exchange; it’s helping build the foundation of Hong Kong’s future as a global digital asset management center.

Core Keywords: