On June 27, Tianfeng Securities Co., Ltd. (601162.SH) announced via the Shanghai Stock Exchange's e-interaction platform that its wholly-owned subsidiary, Tianfeng International Securities and Futures Limited, has obtained approval from Hong Kong's Securities and Futures Commission (SFC) to provide virtual asset trading services under the Type 3 license category.
Understanding Hong Kong SFC’s Virtual Asset Licensing Framework
The SFC regulates virtual asset activities through five distinct license types:
- Operating virtual asset trading platforms
- Managing investment portfolios with over 10% allocation to virtual assets
- Providing virtual asset trading via omnibus account arrangements (Tianfeng’s approved category)
- Advising on virtual assets
- Acting as an introducing agent for virtual asset platforms
Key Implications of Tianfeng’s Type 3 License
- Enables clients to trade virtual assets (e.g., cryptocurrencies) through omnibus accounts, where transactions are pooled under Tianfeng’s custody.
- Strengthens Tianfeng’s competitive edge in Asia’s rapidly growing digital asset market, aligning with Hong Kong’s pro-innovation regulatory stance.
FAQ: Hong Kong’s Virtual Asset Regulatory Landscape
Q1: What distinguishes a Type 3 SFC license from other categories?
A: Unlike Type 1 (trading platforms) or Type 4 (advisory services), Type 3 focuses on execution-only services via omnibus structures, limiting client-facing interactions.
Q2: How does this approval impact Tianfeng’s business strategy?
A: It positions Tianfeng to capture institutional and high-net-worth demand for regulated crypto exposure, diversifying revenue beyond traditional securities.
Q3: Are there risks associated with omnibus account trading?
A: Yes. Clients rely on the licensee’s operational integrity, making custody safeguards and transparency critical compliance priorities.
👉 Explore regulated virtual asset trading platforms for institutional-grade security and liquidity.
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