Forthright Securities and Forthright Capital have received approval from the Securities and Futures Commission (SFC) to add virtual asset capabilities.

This applies to their existing regulated activities.

Both firms are subsidiaries of Hong Kong-listed JF SmartInvest Holdings.

The regulatory upgrade applies to the companies’ Type 1 dealing in securities, Type 4 advising on securities, and Type 9 asset management licenses.

This means the SFC now permits the firms to provide regulated virtual asset services within their licensed scope.

The company noted this could potentially enable clients to access both traditional securities and virtual assets within a more integrated platform.

“Virtual assets are evolving from a standalone trading category into an integral component of global asset allocation,”

a spokesperson for Forthright Securities said.

The spokesperson added that the market’s next growth driver is the ability to embed virtual assets within a professional investment service ecosystem.

Since the SFC established its clear licensing regime for virtual assets in 2023, multiple traditional financial institutions and internet brokerages have applied for or obtained related business qualifications.

Hong Kong’s licensed virtual asset market currently includes dedicated trading platforms that handle order matching.

It also includes licensed institutions that integrate digital assets into broader wealth management services.

Forthright has secured approvals across dealing, advising, and asset management, positioning it to expand into integrated allocation services.

The firm will comply with the SFC’s regulatory requirements for virtual asset businesses.

These requirements mandate investor protection standards equivalent to those in traditional securities services.

The company plans to use its parent group’s artificial intelligence and investment research technology to deliver tailored cross-asset allocation solutions.

JF SmartInvest views the regulatory approvals as a practical measure to expand its financial services footprint in Hong Kong.

 

 

Featured image credit: Edited by Fintech News Hong Kong, based on image by freepik via Magnific