Internet giant founder acquires this license with his own hands

Internet Mogul Personally Obtains License Through His Own Efforts

Author: China Fund News

Recently, the Hong Kong Securities and Futures Commission released the November licensing application status on its official website. Information from the Hong Kong Securities and Futures Commission showed that internet giants’ founder family offices, well-known funds in Hong Kong, and global virtual asset investment institutions all obtained licenses from the Hong Kong Securities and Futures Commission in November, entering the Hong Kong financial market.

For example, Hong Kong investment firm C Capital Investment Management Limited obtained the number 4 and number 9 licenses from the Hong Kong Securities and Futures Commission in November. According to related information, the number 4 license allows providing advisory services on securities, and the number 9 license allows asset management.

C Capital Investment Management was established in 2017 and currently has a team of more than 20 people. It was co-founded by Cheng Zhigang, CEO of New World Development and others. The fund focuses on consumer, technology, and blockchain. According to information from the Hong Kong Securities and Futures Commission, the address of C Capital Investment Management is the New World Tower. C Capital initially focused on venture capital and later expanded to other strategies including credit funds and hedge funds. In recent years, Cheng Zhigang has been frequently involved in activities related to blockchain and Web3.

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Source: C Capital official website

Source: Hong Kong Securities and Futures Commission official website

In addition to C Capital, Hong Kong institution GURRYSHARK Fund Management ComLianGuainy Limited also obtained the number 9 license in November. According to industry insiders, this institution is a single-family trust, and its investment range includes private equity, venture capital, and hedge funds. The institution is owned by the founder of a leading internet institution, so its investment also favors technology-related fields.

Other institutions that obtained licenses include Dapu Asset Management (HK), the Hong Kong subsidiary of well-known domestic private equity fund Da Pu Asset Management, which obtained the number 4 and number 9 licenses on November 23. China Arab Capital Limited, founded by Makkah Investment and CMIG New Energy, obtained the number 4 and number 9 licenses, among others.

Virtual asset practitioners apply for licenses one after another

Under the strong promotion of the Hong Kong Special Administrative Region Government, Hong Kong has attracted the attention of global virtual asset practitioners.

For example, among the newly licensed institutions in November, individuals related to First Fortune Investment Fund Limited expressed interest in blockchain and virtual assets in interviews. For example, Yang Zhenjun, the founder of First Fortune Investment Fund, introduced to the media that China Hong Kong has a sound regulatory system, and Hong Kong funds have relatively high credibility and security compared to other virtual asset centers. China Hong Kong followed Singapore in launching the OFC fund structure and also issued a series of preferential policies (OFC fund subsidies, complete exemption from fund taxation). “Hong Kong’s fiat custody and banking system are the most sound. Starting from the ‘Digital Currency Declaration’ in November 2022, China Hong Kong has introduced the most proactive and moderately relaxed regulatory rules, and is continuously launching more and more perfect follow-up policies. It is the friendliest jurisdiction with clear rules for digital currency regulation to follow.” He also added that the Hong Kong Securities and Futures Commission clearly stipulates that to issue compliant funds that invest fully in digital currencies, not only the number 9 license (traditional) is required, but also two Responsible Officers (RO) under the number 9 license must have relevant industry experience.

For example, according to official website information, SEBA Bank AG (SEBA Bank), a licensed Swiss digital bank, provides comprehensive financial solutions for the digital age, covering areas such as equity investment, lending, custody, investment, trading, banking, and deposits in Switzerland. SEBA Bank’s wholly-owned subsidiary, SEBA (Hong Kong) Limited (SEBA Hong Kong), obtained a license from the Securities and Futures Commission (SFC) of Hong Kong in November. This license allows SEBA Hong Kong to engage in regulated activities in Hong Kong.

Can licensed institutions with a Type 9 license in Hong Kong freely engage in virtual asset investments? Regarding this question, Yuan Chengpeng, a key member of the Beijing Dacheng Law Firm, stated to a reporter from the China Fund News that if an institution holds a Type 9 license and the virtual assets in its investment portfolio do not exceed 10% of the net asset value of the portfolio, then it can manage this portfolio under its existing license. If an institution holding a Type 9 license has virtual assets that account for more than 10% of the net asset value of the portfolio, it needs to apply to the SFC for an upgrade of its license. After obtaining approval, it can then manage this portfolio.

In the third quarter, the SFC received 2017 license applications

Data shows that Hong Kong financial licenses, including those related to virtual assets, are attractive.

Since the implementation of the new virtual asset trading platform licensing regime by the SFC on June 1 this year, as of December 11, two institutions have been granted virtual asset trading platform licenses in Hong Kong, namely OSL Digital Securities Limited and Hash Blockchain Limited.

Source: Official website of the SFC

So far, nine institutions have submitted applications for virtual asset trading platforms to the SFC in Hong Kong. These include Hong Kong BGE Limited; Hong Kong Digital Asset Trading Group Limited; Hong Kong Virtual Asset Trading Co., Limited; Victorious Digital Technology Limited; Meex Digital Securities Limited; Cheetah Trading (Hong Kong) Limited; OKX Hong Kong FinTech ComLianGuainy Limited; Hong Kong VAEXC Limited; and Cloud Account Greater Bay Area Technology (Hong Kong) Limited.

Source: Official website of the SFC

The SFC stated on its official website that the publication of the list of virtual asset trading platform applications is to enable the public to determine whether the platforms have made false or misleading statements regarding their license applications with the SFC. The virtual asset trading platform operators on the application list have not yet obtained approval from the SFC for their licensing applications and may not meet the relevant requirements. Investors should refer to the “List of Licensed Virtual Asset Trading Platforms” published by the SFC to understand the names of virtual asset trading platform operators that have been formally licensed. The SFC also reminds investors to be aware of the risks of trading virtual assets on unregulated platforms, including any VATP applicants listed on this list.

The Securities and Futures Commission (SFC) of Hong Kong recently released its third-quarter report, which showed that in the third quarter, the SFC received 2,017 license applications (including 1,972 individuals and 45 institutions), an increase of 13% from the previous quarter and 6% from the same period last year. As of September 30, the total number of licensed individuals and institutions and registered institutions was 48,362, including 3,236 licensed institutions and 112 registered institutions. In the third quarter, the total number of newly licensed individuals and institutions and registered institutions was 3,094, including 3,061 individuals and 33 licensed institutions and registered institutions. Out of the 33 company licenses issued in the third quarter, the 9th category (asset management) accounted for 44% of regulated activities and the 4th category (providing advisory services on securities) accounted for 36%.

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