Key Notes
- LTP’s Hong Kong subsidiary, LiquidityTech Limited (LTP HK), has obtained five operational licenses from the country's Securities and Futures Commission (SFC), expanding its regulated services for institutional investors.
- LTP sees the license acquisition as a major step in its global regulatory compliance efforts, reinforcing trust among institutional clients.
LTP, a digital asset brokerage company for institutional investors, has joined the growing list of crypto companies receiving operational licenses from regulatory authorities in Hong Kong.
On Tuesday, the company announced that it had received five different licenses from the Hong Kong Securities and Futures Commission (SFC) through its local subsidiary, LiquidityTech Limited (LTP HK). With these licenses—Type 1, 2, 4, 5, and 9—LTP HK is now qualified to provide a suite of regulated services to proprietary trading firms, hedge funds, asset managers, and corporate investors.
A Breakdown of LTP’s New Licenses
Under the Type 1 license, LTP HK can offer securities services, while Type 4 allows it to serve as an advisor. The Type 2 and 5 licenses provide the company with the necessary regulatory backing to offer futures contracts on its platform and advise on the asset class.
Meanwhile, the Type 9 license enables LTP HK to offer asset management services to institutional clients.
While the company claims to be the first digital asset-focused brokerage firm to secure these licenses in Hong Kong, regulatory authorities had previously granted similar operational licenses to FalconX, a digital-assets prime brokerage firm. The company received its license from the SFC in February 2024, a year before LTP HK.
LTP noted that acquiring these licenses underscores its commitment to regulatory compliance worldwide. The firm said it is now better positioned to serve its institutional customers.
“Being the first virtual asset-focused prime brokerage to secure a comprehensive suite of SFC licenses, we underscore our unwavering commitment to serving institutional clients who demand secure, high-performance trading infrastructure in one of the world’s leading financial centers,” said Jack Yang, the company’s founder.
Hong Kong’s Crypto Hub Ambitions
Hong Kong’s approval of the five licenses aligns with its broader effort to position itself as a leading hub for digital asset innovation in the Asia-Pacific (APAC) region. The government opened its doors to crypto companies in June 2023 when the SFC introduced a comprehensive regulatory framework for digital asset service providers seeking to operate in the country.
The regulatory framework also allows crypto service providers to extend their offerings to retail customers under stringent regulations designed to protect consumers. The law mandates that interested participants obtain regulatory approval from the SFC before entering the market.
Since the implementation of this regulatory regime, the SFC has granted licenses to numerous companies, starting with HashKey Exchange and OSL Digital Securities. More recently, firms like Accumulus, PantherTrade, and DFX Labs have also secured regulatory approval, as listed on the SFC’s official website .
With the implementation of its regulatory framework in 2023, Hong Kong established itself as a leading force in shaping Asia’s crypto landscape, outpacing regional counterparts like Singapore, South Korea, Taiwan, and Japan.
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