Baker McKenzie assisted Victory Securities Company Limited ("Victory Securities"), a wholly owned subsidiary of Hong Kong Stock Exchange-listed Victory Securities (Holdings) Company Limited, in securing approval from the Hong Kong Securities and Futures Commission (“SFC”) to provide virtual asset (“VA”) services to retail clients.
Victory Securities is the first licensed corporation in Hong Kong to be permitted to provide VA dealing services to retail clients by way of establishing an omnibus account with SFC-licensed VA trading platforms ("Omnibus VA Dealing Services"). Victory Securities is also the first licensed corporation to offer VA advisory services for retail clients.
The groundbreaking approvals came just one month after the SFC and the Hong Kong Monetary Authority jointly released the updated joint circular on intermediaries' virtual asset-related activities on 20 October 2023 ("2023 Joint Circular"), which supersedes the same-name joint circular released in 2022 ("2022 Joint Circular"), announcing that intermediaries may provide VA dealing and advisory services to retail clients under certain terms and conditions.
Last year, Baker McKenzie assisted Victory Securities to become the first licensed corporation in Hong Kong to provide the full spectrum of virtual assets dealing and advisory services to professional investors under the 2022 Joint Circular.
The Baker McKenzie team advising Victory Securities comprised Financial Services Regulatory Partner Karen Man and virtual asset specialists Ryan Chan and Samantha Lai.
"We are extremely pleased to have assisted our long-standing client Victory Securities in securing the approvals just one month after the regulators announced the terms and conditions for providing VA services to retail clients," Karen Man commented.
"This development not only attests to our client's commitment to be at the forefront of providing regulated VA services to investors in Hong Kong but also demonstrates Baker McKenzie's strengths in VA regulatory advisory service. With our strong track record and extensive industry experience in virtual assets, we look forward to supporting Victory Securities with their legal needs as they continue to lead Hong Kong's thriving virtual assets industry with new services and product offerings," Karen added.
Kennix Chan, Executive Director of Victory Securities, commented: “It has been a pleasure and excitement to work with Baker McKenzie's team again. Baker McKenzie has always been supportive and professional in different aspects especially regarding virtual assets and the latest regulatory framework matters. We are glad that we have made history together again, Victory is now ready to leverage our VA experience from the previous months on serving professional investors and bringing it to retail investors. Last but not least, we look forward to further opportunities with the Baker Team in the future!”