Learn about the backgrounds of the four virtual asset trading platforms and executives that have applied for licenses from the Hong Kong Securities Regulatory Commission in one article

Cointime · 2023-09-30T07:53:06.000Z

Author: Bitkoala Kaola Finance This week, the South China Morning Post disclosed that the Hong Kong Securities and Futures Commission stated that since the new virtual asset rules came into effect on June 1, only OSL Digital Securities Limited and Hash Blockchain Limited have obtained licenses to provide services to retail customers in Hong Kong. Currently, four companies have applied for licenses, namely HKVAX, HKBitEx, Hong Kong BGE Limited and Victory Fintech Company Limited. So, what is the background of these four companies? Let’s take a closer look: 1.HKBitEX Institutional situation: HKBitEX was established in 2019. Its full Chinese name is "Hong Kong Digital Asset Trading Co., Ltd.". It is reported that it is also "one of the first institutions to apply for VATP". It should be noted that it is not to be confused with another company that has not applied for a license from the Securities Regulatory Commission. Hong Kong Digital Asset Exchange Limited" (HKD.com) confusion.

Author: Bitkoala Finance
This week, the South China Morning Post revealed that the Hong Kong Securities and Futures Commission said that since the new virtual asset rules came into effect on June 1, only OSL Digital Securities Limited and Hash Blockchain Limited have obtained licenses to serve retail customers in Hong Kong. Currently, four other companies have applied for licenses, namely HKVAX, HKBitEx, Hong Kong BGE Limited and Victory Fintech Company Limited.
So, what are the backgrounds of these four companies? Let’s take a closer look:
1、HKBitEX
Institutional situation: HKBitEX was established in 2019. Its full Chinese name is "Hong Kong Digital Asset Exchange Co., Ltd.". It is reportedly "one of the first institutions to apply for VATP." It should be noted that it should not be confused with "Hong Kong Digital Asset Exchange Co., Ltd." (HKD.com), another company that has not applied for a license from the Securities and Futures Commission.
Executive background: HKBitEX's website shows that the company's executive background is very strong. It is reported that HKBitEX's Chief Development Director Shi Lin was the co-director of the listing review team before 2020, but it is reported that he has resigned in July 2021; another key figure is HKBitEX founder Gao Han, who has worked at the Hong Kong Stock Exchange and participated in the Hong Kong Stock Connect and Bond Connect, and the platform has also had many former employees of the Hong Kong Stock Exchange join; Gao Han is also the chairman of Taiji Capital Group, and HKBitEX belongs to the virtual asset exchange business of the group. Taiji Capital announced the issuance of the first real estate fund security token offering (STO) for professional investors in the middle of this month. It is also the first fund tokenization fundraising model approved by the Hong Kong Securities and Futures Commission. The funds raised will be used to purchase 5 retail properties.
2、HK BGE
Institutional situation: HK BGE was established in 2021 and is a wholly-owned subsidiary of the listed company HKE Holdings. It began preparing and applied for a VATP license in 2022. However, its official website has not been officially used and currently displays prompts such as "in trial operation" and "stay tuned for the official opening".
Executive background: HK BGE's executives also have impressive backgrounds. The CEO was Thor Chan, the former CEO and co-founder of the crypto exchange AAX. In February this year, it was announced that Ouyang Jiannan, the chief operating officer of HashKey Exchange, which has been licensed by the Securities and Futures Commission, would serve as the CEO. In addition, HK BGE currently has only two directors, including Ou Jinpei and Ji Danna, who are the company's operations director and business development director respectively. The company's website is currently open only to invited professional investors.
3. Victory (Victory Digital Technology)
Institutional situation: Victory Digital Technology is a subsidiary of Victory Securities, a long-established local securities firm in Hong Kong. In February of this year, Victory Securities announced that the Securities and Futures Commission of Hong Kong had accepted the application for a license to conduct Type 1 and Type 7 regulated activities submitted by Victory Digital Technology Co., Ltd. (Victory Digital Technology, an associated company of the Group) on February 2, 2023. Victory Securities believes that in view of the rapid development of virtual assets in recent years, the company's board of directors believes that, subject to obtaining the necessary regulatory approvals, Victory Digital Technology's operation of a virtual asset trading platform is in line with the Group's strategy of providing investors with more diversified services. It will also create opportunities for synergies between the Group's various business lines, thereby opening up new sources of revenue for the Group.
Executive background: Victory Digital Technology's executive directors include Hong Kong Securities Association Chairman Gao Juan, while Victory Securities was founded by Dr. Gao Detai, a winner of the World Outstanding Chinese Award and known as a "gold medal broker". The company is also a qualified foreign institutional investor (QFII) recognized by the China Securities Regulatory Commission.
4、HKVAX
Institutional situation: HKVAX’s Chinese name is “Hong Kong Virtual Asset Exchange”. The company announced on August 11 that it had obtained the SFC’s approval-in-principle notice to carry out Category 1 and Category 7 regulated activities. Its core products are expected to include over-the-counter (OTC) broker services, institutional-grade trading platforms, and 100% guaranteed custody services, but it is not currently on the licensed list.
Executive background: HKVAX's website shows that the company has three co-founders, among whom CEO Wu Weiliang was the managing director of CITIC Futures International Department and is currently the vice chairman of the Financial and Treasury Services Committee of the Hong Kong General Chamber of Commerce (HKGCC). Another co-founder and chief operating officer, Fok Siu-leung, is a qualified accountant registered with the Hong Kong Institute of Certified Public Accountants and is a representative of the Hong Kong Institute of Certified Public Accountants' tax examination scoring team. The third co-founder and technical director, Liu Cheng, came from Alibaba and Ant Financial and has a good performance in blockchain technology and digital currency.
Summarize
After the JPEX fraud case broke out, the Hong Kong Securities and Futures Commission has changed its original position and decided to disclose the applicants for virtual asset trading platforms (VATP) in response to public demands. The Hong Kong Securities and Futures Commission also emphasized that the platforms or companies in the application may not necessarily obtain a license and are still not regulated by it, so the public should not have a false sense of security about the platforms on the applicant list.