Lion Group Holding Ltd. operator of an all-in-one trading platform that offers a wide spectrum of products and services as well as a developer of new growth products including SPAC sponsorship, NFT and metaverse-related initiatives, today announced that the Group will formally apply to the Securities and Futures Commission of Hong Kong (“Hong Kong SFC”) for a Virtual Asset Trading Platform (VATP) license (“SFC Type 7 license”) to further expand its digital business footprint.
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Presently, Hong Kong is establishing a standardized global virtual asset (VA) trading market. According to the Hong Kong SFC’s position paper on the regulation of VA trading platforms in Hong Kong, issued in 2019, a firm that operates a centralized VA trading platform in Hong Kong and intends to offer trading of at least one security token on this platform may apply for a license from the SFC to conduct regulated activities, Type 1 (dealing in securities) and Type 7 (providing automated trading services (ATS)). In particular, VAs are digital representations of value which may be in the form of digital tokens (such as digital currencies, utility tokens or security or asset-backed tokens), any other virtual commodities, crypto assets or other assets of essentially the same nature, irrespective of whether they constitute “securities” or “futures contracts” as defined under the Securities and Futures Ordinance.
A SFC Type 7 (ATS provider) license will allow the Group to provide customers with automated financial services covering multiple industries including securities, futures, foreign exchange, bonds and other financial products. The requirements for this license are more stringent than other financial service licenses given the high technological content of the industry and the involvement of VA transactions. Currently, only two companies have been approved by the Hong Kong SFC for this licensing, and there is no doubt that the first compliant virtual trading platform should witness broad development opportunities.
Lion remains focused on cultivation in Hong Kong and Singapore, which are both global financial centers and also competing global virtual asset hubs. With a commitment to create an extremely complete compliance trading system guarantee for customers, Lion always upholds the concept of license first. Up to now, Lion Group holds various licenses, including SFC Type 1 (dealing in securities), Type 2 (dealing in futures contracts), Type 4 (advising on securities), Type 5 (advising on futures contracts), and Type 9 (asset management) licenses issued by the Hong Kong SFC, the Capital Markets Service (CMS) license issued by the Monetary Authority of Singapore , Full Securities Investment Business License issued by Cayman Islands Monetary Authority (CIMA) as well as a Crypto License from the Dubai Multi Commodities Centre (DMCC). The Group’s VATP license application in Hong Kong will enable Lion Group to further expand in the fintech sector and opens new revenue opportunities.
Mr. Wang Chunning (Wilson), CEO of Lion Group Holding Ltd, said, “Lion not only has a unique financial innovation business model, but also holds a competitive edge when it comes to compliance, with a complete array of operating licenses for its financial activities. Our Lion World metaverse project and our “MetaWords” NFT project developed early-on in collaboration with world-renowned artist Xu Bing, were all breakthroughs at the frontier of digital innovation.”
“After successfully obtaining the SFC Type 7 VA trading license from the Hong Kong SFC, Lion will meet the relevant compliance requirements making it eligible as a VATP. Lion will not only provide professional investors with automated trading services such as encrypted digital transactions and other innovative digital assets, but also allow customers access to the digital assets market with greater convenience whilst meeting compliance requirements.”
“In the future, we will continue to expand the scope of financial technology, including but not limited to areas such as VAs, ESG, and Web3.0. We will strive to both contribute and promote the high-speed construction and high-quality sustainable development of the financial digital ecological business system, while delivering meaningful value growth for our shareholders.”