Hong Kong's SFC Greenlights Hang Feng's Virtual Asset Expansion

Hang Feng Technology Innovation Co., Ltd. (NASDAQ: FOFO) has taken a significant step in the digital asset space as its subsidiary, Hang Feng International Asset Management Limited (HFIAM), secured approval from Hong Kong's Securities and Futures Commission (SFC) to offer virtual asset-related advisory and management services. The regulatory green light, announced on November 28, 2025, allows HFIAM to expand its existing Type 4 (Advising on Securities) and Type 9 (Asset Management) licenses to include virtual assets, positioning the company to serve professional investors in a rapidly evolving market. This move aligns with Hong Kong's progressive regulatory framework, which has positioned the city as a hub for innovation in financial services while maintaining stringent compliance standards.

The upgraded licenses grant HFIAM the authority to provide investment advice on virtual assets and manage portfolios where virtual asset exposure exceeds 10% of the gross portfolio value. Additionally, the subsidiary can now operate standalone virtual asset funds, a capability previously restricted under the SFC's regulatory framework. These changes are subject to specific terms, including a focus on transparency, prudence, and investor protection, as emphasized by the company's management. The approval underscores the SFC's cautious yet supportive approach to integrating digital assets into traditional financial systems, a strategy that balances innovation with risk mitigation.

For Hang Feng, the license upgrades represent a strategic pivot to capitalize on growing institutional demand for digital asset solutions. The company has long operated in corporate management consulting and asset management, but this expansion into virtual assets marks a pivotal diversification. By leveraging Hong Kong's regulatory environment, Hang Feng aims to bridge traditional finance with digital innovation, offering clients structured solutions to navigate the complexities of the digital economy. The company's subsidiary, Starchain Investment Trading Limited, has already been instrumental in delivering tailored consulting services, including performance reporting and compliance advisory, since 2023. The addition of virtual asset services is expected to deepen its service offerings and accelerate revenue growth.

The regulatory approval also highlights the broader trend of institutional players entering the digital asset space. With global markets increasingly recognizing the legitimacy of cryptocurrencies and blockchain-based assets, firms like Hang Feng are positioning themselves to meet the demand for compliant, institutional-grade services. This aligns with recent developments in Europe, where KuCoin secured a MiCA license in Austria, and in South Korea, where regulators are tightening anti-money laundering rules for crypto transactions . Hong Kong's proactive stance, however, distinguishes it as a key player in the Asia-Pacific region, where regulatory clarity remains a critical factor for market growth.

Looking ahead, Hang Feng has outlined ambitious plans to expand its virtual asset portfolio while maintaining a commitment to responsible and sustainable practices. The company aims to develop transparent, risk-managed products that cater to professional investors, reinforcing its reputation as a trusted partner in asset management. Management has emphasized that the upgraded licenses will not only diversify the company's revenue streams but also solidify its role in shaping the future of digital asset investment. As the financial landscape continues to evolve, Hang Feng's strategic alignment with Hong Kong's regulatory framework positions it to lead in a market where innovation and compliance are increasingly intertwined.