Lion Group Holdings (LGHL.US) applies for Hong Kong virtual asset license to strengthen digital business layout

November 17, 2022, Lion Group Holdings Ltd.$Lion Group (LGHL.US)$ It is a one-stop trading platform operator that provides investors with a wide range of products and services, and an innovative product developer focusing on the Web 3.0 and metaverse fields. The Group announced today that it will formally apply to the Hong Kong Securities and futures Commission (“Hong Kong Securities Regulatory Commission”) for approval of a virtual asset trading platform VATP (Virtual Asset Trading Platform) license (“SFC License No. 7”) to further improve the layout of the digital business sector.

Currently, Hong Kong is establishing a relatively standardized virtual asset trading market around the world. According to the centralized VA trading platform regulatory framework issued by the Hong Kong Securities Regulatory Commission in 2019 and the requirements of the “Position Paper - Supervising Virtual Asset Trading Platforms”, platform operators that operate virtual asset trading platforms in Hong Kong and provide at least one type of securities token transactions fall within the jurisdiction of the Hong Kong Securities Regulatory Commission and must hold SFC license 1 for securities trading and SFC 7, which provides automated trading services. Among them, VA is a digital representation of value, which can be in the form of digital tokens (such as cryptocurrencies, utility tokens, securities, or asset-backed tokens), any other virtual goods, cryptographic assets, or other assets of essentially the same nature, regardless of whether they constitute a “security” or “futures contract” as defined by the Securities and Futures Ordinance (SFO).

The SFC 7 license is the Hong Kong Financial Automated Trading Service License. It provides customers with automated financial operation services, covering various industries such as securities, futures, foreign exchange, and bonds. Since the industry is highly technical and involves virtual asset transactions, the requirements of this license are also higher than other financial service licenses. So far, only two companies have been approved by the Hong Kong Securities Regulatory Commission. There is no doubt that the first compliant virtual trading platform will usher in broad development prospects.

Lion Group focuses on cultivating the global financial center and competing with the global virtual asset center in Hong Kong and Singapore. It has always adhered to the concept of license first. It has held SFC 1, 2, 4, 5, and 9 licenses issued by the Hong Kong Securities Regulatory Commission, the capital market service license (CMS license) issued by the Monetary Authority of Singapore, and the Cayman (CIMA) full regulatory license and Dubai (DMCC) digital asset trading license. It is committed to creating the ultimate compliance trading system guarantee for customers. The application for a Hong Kong virtual asset license will facilitate Lion Group's continued expansion in the digital finance field and open up a new window of digital business revenue.

Mr. Wang Chunning (Wilson), CEO of Lion Group Holdings, said, “Lion Group has a complete operating license advantage and a unique financial innovation business model. The Lion World metaverse project leading development in the early stages and the new “MetaWords” NFT use case in collaboration with world-famous artist Xu Bing are all breakthroughs in the field of digital frontier. After successfully obtaining a virtual asset trading license issued by the Hong Kong Securities Regulatory Commission, Lion Group will be a compliant virtual asset service provider, providing professional investors with automated trading services such as cryptographic digital transactions and other innovative digital assets, while enabling customers to participate in the digital asset market in a more compliant and convenient manner. In the future, we will continue to be deeply involved in the fields of fintech, virtual assets, ESG, and Web 3.0, and strive to promote the rapid construction and high-quality sustainable development of the financial digital ecosystem business system to create meaningful value growth for shareholders.”

41K Views