Hong Kong opens VASP license applications, and MetaTdex plans to provide virtual asset trading services to users under the new licensing regime. In addition to the previously submitted applications for Type 1 and Type 7 licenses, MetaTdex will now also apply for a VASP license.
Hong Kong SFC made a significant announcement allowing licensed virtual asset trading platforms to serve the public.
On May 23, SFC (Hongkong Securities and Futures Commission) published a consultation summary for licensed asset trading platform operators, stating that the "Virtual Asset Platform Guidelines" and "Anti-Money Laundering Guidelines" will come into effect on June 1. MetaTdex understands that the consultation document specifically requires virtual asset trading platforms to apply for licenses under both the existing regime of the Securities and Futures Ordinance and the Virtual Asset Service Provider regime under the Anti-Money Laundering Ordinance (i.e., applying for Type 1, Type 7, and VASP licenses simultaneously), in order to obtain dual licensing.
Hong Kong allows exchanges to offer services to retail investors for the first time
The SFC has stated that it will streamline the application process for dual licenses and welcomes virtual asset trading platform operators who are ready to comply with the SFC's standards to apply for licenses. MetaTdex, a decentralized exchange (DEX), has promptly responded by submitting a comprehensive application form, indicating the intention to apply for both licenses in accordance with the existing regime of the Securities and Futures Ordinance and the Virtual Asset Service Provider regime under the Anti-Money Laundering Ordinance.
Under the current regime, virtual asset trading platforms licensed under the Securities and Futures Ordinance can only serve professional investors. However, with the increasing involvement of traditional financial institutions and service providers in the virtual asset field and the gradual improvement of regulations in this area, retail investors have become more knowledgeable about virtual assets. Considering these factors and weighing the importance of investor protection for retail investors, licensed virtual asset trading platforms will be allowed to provide trading services to various types of investors, including retail investors, provided that the platforms comply with a series of investor protection measures.
Cryptocurrency exchanges are required to conduct strict due diligence on tokens listed for trading. The SFC emphasizes that virtual assets themselves are not regulated, which means that the SFC has never reviewed or approved the offering or marketing documents of virtual assets, unlike traditional financial products. Therefore, the SFC requires platform operators to conduct reasonable due diligence on virtual assets to be included in their trading platforms and holds them ultimately responsible for this process.
Unlike most decentralized exchanges (DEXs), MetaTdex established a token listing committee early on, which conducts rigorous reviews of projects seeking to list tokens and ensures that internal monitoring measures, systems, and technologies can handle various risks. In addition, MetaTdex enhances user education on virtual asset trading features and risks, ensuring that users can make informed decisions.
MetaTdex is the future of compliance
MetaTdex adheres to compliance to pave the way for the future. Since 2022, MetaTdex has initiated a comprehensive compliance plan for obtaining financial licenses and fiat currency integration to provide policy protection for users and their assets. Currently, MetaTdex's compliance strategy covers regions such as the Middle East, North America, and Southeast Asia.
- DMCC: The world's first DEX to obtain a Dubai DMCC trading license.
- MSB: Approved by a U.S. Treasury Department subsidiary.
- DIFC: Expected to be completed in the third quarter of 2023.
- VASP: In the process of applying for VASP license and SFC Type 1 and Type 7 licenses.
- VARA: Expected to be completed in the third quarter of 2023.
- ADGM: Expected to be completed in the third or fourth quarter of 2023.
- MTL: Passed the third round of review.
- Ongoing progress in applying for regulatory licenses in more countries/regions.
MetaTdex advocates for secure investment and steady value growth, aligning closely with the regulatory principles of Hong Kong authorities. It has maintained a record of zero asset security incidents since its operation. MetaTdex also maintains active communication with regulatory agencies, international regulatory organizations, and the industry worldwide, actively promoting sustainable and responsible development in the industry.
MetaTdex not only provides cryptocurrency asset trading but also offers a range of financial services such as mining, wealth management, and lending. It plans to launch tokenized stock trading services at the appropriate time, bridging the gap between cryptocurrency assets and stocks, allowing institutions and individual users worldwide to achieve cross-border and cross-investment field asset allocation through a decentralized exchange (DEX).
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