Future FinTech's Hong Kong Subsidiary Applies for VASP License, Eyes Expansion in Virtual Asset Services

Future FinTech Group's Hong Kong subsidiary, Future International Securities and Futures Limited, has applied for a Type 1 Virtual Asset Service Provider license from the Securities and Futures Commission of Hong Kong. This move reflects the company's expansion into cryptocurrency trading services through electronic facilities under Hong Kong's regulatory framework. The application is being prepared in partnership with a Hong Kong compliance consultancy and is expected to strengthen client trust and position the company for growth in an evolving financial sector.

Future FinTech Group Inc. (FTFT), a comprehensive financial and digital technology service provider, has taken a significant step towards expanding its services by applying for a Type 1 Virtual Asset Service Provider (VASP) license from the Securities and Futures Commission (SFC) of Hong Kong. This move reflects the company's strategic decision to enter the cryptocurrency trading sector through electronic facilities, leveraging Hong Kong's robust regulatory framework and financial ecosystem.

FTFT's wholly-owned Hong Kong subsidiary, Future International Securities and Futures Limited (Future Securities), has signed a commission agreement with a renowned Hong Kong compliance consultant to assist in the application process. The consultant will help Future Securities apply for the VASP license and a Type 9 Asset Management License, building upon the company's existing licenses (Type 1, 2, and 4). Together with FTFT's Real-World Asset division, the consultant will conduct a comprehensive review of the company's business model and risk management capabilities, and prepare application materials and a business plan for submission to the SFC.

The Hong Kong VASP license covers services related to virtual assets such as cryptocurrency trading through electronic facilities. This move is a strategic expansion for Future FinTech, aiming to provide clients with more comprehensive and diversified financial services that meet their investment needs. The application reflects Future Securities' recognition of the immense potential and vast opportunities in the global virtual asset market, which has attracted growing global attention in recent years.

Future Securities, established in 2010, has gained a strong reputation in traditional financial services, offering diversified financial products and services including stocks, bonds, and funds. The company's professional team comprises seasoned financial experts with deep market insight and exceptional risk management capabilities. With this application, Future Securities seeks to enhance its market competitiveness and industry presence by legally operating virtual asset-related businesses under the SFC's compliance framework.

Upon successful acquisition of the VASP license, Future Securities will be authorized to conduct virtual asset-related business within a compliance framework, providing clients with diversified investment options and enhancing the company's reputation. The company has prioritized compliance and risk management during the application process, establishing a dedicated team and collaborating with professional legal and compliance advisors to ensure progress.

FTFT CEO Mr. Hu Li commented, "Future Securities' application for upgrading its Hong Kong VASP license represents a key strategic move for our development and highlights the Hong Kong financial market's forward-thinking and openness as regards the virtual asset sector. We believe that with effective regulatory oversight and collaborative efforts from market participants, Hong Kong's virtual asset market will achieve orderly, healthy, and sustainable growth."

Looking ahead, Future Securities will actively explore innovations in the virtual asset field and leverage its strength in traditional finance to build a distinctive virtual asset service platform. The company will continually strengthen its risk management and compliance framework while enhancing service quality and client satisfaction to contribute to the healthy development of Hong Kong's virtual asset market.

References:
[1] https://www.prnewswire.com/news-releases/ftft-announces-its-formal-application-for-a-vasp-license-in-hong-kong-to-vigorously-expand-into-the-virtual-asset-sector-302526150.html
[2] https://www.marketscreener.com/news/ftft-announces-its-formal-application-for-a-vasp-license-in-hong-kong-to-vigorously-expand-into-the-ce7c5ed2de8bf723