Hong Kong’s Securities and Futures Commission has given Victory Securities, a Hong Kong-based investment management company, the go-ahead to extend its services for digital assets to retail customers.
The company announced on November 24, that it obtains the SFC digital assets license to offer digital assets service. This achievement establishes the company as the inaugural licensed corporation capable of delivering these services to its clients.
As per the declaration, Victory Securities aims to blend virtual assets into the conventional finance landscape, providing a seamless opportunity for retail customers to engage in the acquisition and exchange of assets.
The Hong Kong authority’s commitment to becoming the International Virtual Asset Center was greatly appreciated by the company.
The firm aims to bridge the gap between finance branches by establishing an interactive platform that enables users to easily distribute assets and provide investment guidance to retail clients. This platform will also include regular research reports to enhance the user experience.
The company expressed its commitment to adhering to current regulations that call for the provision of sufficient product information and the assessment of user knowledge before any investment. To achieve this, the company stated that it will prioritize investor education and research, while also maintaining partnerships with regulatory agencies.
Hong Kong’s web3 revolution
HashKey and OSL Securities have received regulatory approval before, but now Victory Securities has also achieved the same feat. This achievement places Victory Securities amongst the esteemed list of firms in Hong Kong that hold retail crypto licenses.
Hong Kong’s approach towards digital assets has earned praise by establishing a regulatory framework for retail markets. This framework aims to safeguard the interests of all parties involved in the sector.
Julia Leung, the chief legal officer at the SFC, acknowledges that the rules, unveiled on June 1, aim to strike a balance between fostering fair competition among companies and safeguarding the interests of investors. In a similar vein, Gary Tiu, the head of regulation at OSL, praises the regulatory framework, proposing that it should be thoroughly examined and emulated across different markets.
Bitget, a virtual asset exchange, made the surprising decision to cease operations in Hong Kong. Their justification for this unexpected move on December 13 was attributed to market factors, resulting in them abandoning their prior intentions of obtaining a local license.
Concerning business and market factors, we have decided not to pursue a VATP license in Hong Kong. To most people in the industry, this decision by Bitget came as a shock because Hong Kong has been a centre for trading digital assets. Nevertheless, Bitget’s action may have been influenced by high competition and difficulties in getting a license.
While Bitget may have chosen to steer clear of Hong Kong’s regulatory framework, other companies are embracing it with open arms. Victory Securities is the latest firm to obtain a retail crypto license in Hong Kong. This milestone achievement showcases the success and effectiveness of the regulatory framework put in place. Victory Securities, a well-established financial services firm, recognized the importance of adhering to regulations and ensuring the trust and protection of its customers.
Dubai, Brazil, and Singapore are actively striving to streamline their digital asset frameworks, aiming to establish regulatory standards akin to Europe’s exemplary implementation of the Markets in Crypto Asset (MiCA) regulation.
Frequently Asked Questions:
1. What has Victory Securities recently revealed?
Hong Kong-based investment management firm, Victory Securities, has been granted the green light by the Securities and Futures Commission (SFC) to provide digital asset services to its retail clientele. This pivotal development signifies a notable extension in the landscape of cryptocurrency licenses within the nation.
2. To what degree does the acquisition of the license by Victory Securities hold importance?
Victory Securities, the pioneer among licensed corporations in Hong Kong, has taken the lead in offering cutting-edge digital asset solutions to its esteemed clientele. This achievement underscores the company’s unwavering dedication to merging the realms of virtual assets and conventional finance, thereby enabling hassle-free accessibility for retail customers.
3. What are the methodologies employed by Victory Securities to incorporate virtual assets into traditional finance?
Victory Securities’ mission is to establish a dynamic platform that empowers individuals to strategically distribute their assets while benefiting from professional investment recommendations. By seamlessly bridging the two sectors of finance, the company provides a holistic approach that encompasses retail users, complete with regular research reports.
4. How does Victory Securities prioritize investor education and regulatory compliance?
The importance of investor education and research is given great emphasis by the company. Complying with current regulatory standards, Victory Securities will work together with regulatory authorities to ensure sufficient product information is provided and assess the knowledge of users before their investments.
5. In what ways does Hong Kong’s regulatory framework offer support to companies operating in the digital asset industry, such as Victory Securities?
On June 1, Hong Kong unveiled a regulatory framework showcasing its favourable attitude towards digital assets. Designed to safeguard investors, the framework also strives to establish fair competition among companies. Among the ranks of firms like HashKey and OSL Securities, Victory Securities now holds a retail crypto license in Hong Kong, adding to the growing list.
6. Do digital asset enterprises encounter obstacles in Hong Kong?
Despite receiving acclaim for its regulatory system, Hong Kong continues to face ongoing challenges. Bitget, a virtual asset exchange, recently declared its decision to shut down operations in Hong Kong on December 13, attributing it to market factors that deterred them from pursuing a local license.
7. Is there a trend of other regions adopting comparable regulatory strategies for digital assets?
Indeed, Dubai, Brazil, and Singapore are all engaged in similar endeavors. These regions are actively striving to establish clear frameworks for digital assets and enforce appropriate regulations, drawing inspiration from Europe’s effective implementation of the Markets in Crypto Asset (MiCA) regulation.