KUN Group secures Hong Kong SFC approval in principle

A KUN Group company has received approval-in-principle from Hong Kong’s Securities and Futures Commission for three regulated activities that would expand its ability to operate across securities dealing, investment advice and asset management, including certain virtual asset-related services.

The approval-in-principle covers Type 1 regulated activity, dealing in securities; Type 4, advising on securities; and Type 9, asset management. KUN Group said the application is its first for these licences and was assessed by the Securities and Futures Commission against fit-and-proper standards, competence requirements and internal-control expectations.

The preliminary approval does not amount to a final licence or remove the need to meet conditions set by the regulator. Once licensed, the Type 1 and Type 4 permissions are expected to include virtual asset-related activities and services for retail clients, while the Type 9 licence would cover general asset management.

For KUN Group, the decision places a regulatory framework around activities it intends to develop in digital asset wealth management and tokenized finance. It also gives the company a route toward serving Hong Kong clients through the city’s established securities-licensing system rather than relying solely on payment, money-service or overseas virtual asset registrations.

Three licence categories cover trading, advice and management

Hong Kong’s Type 1 licence permits regulated dealing in securities, a category that can include arranging or executing transactions involving products treated as securities under local law. The SFC has applied additional requirements where licensed corporations conduct virtual asset-related activities, particularly where they serve retail clients or manage client assets.

Type 4 covers advice on securities. A firm carrying out that activity generally needs appropriate procedures for determining suitability, handling conflicts and maintaining controls over the advice given to clients. These obligations are especially relevant in digital asset markets, where a token’s legal classification and the product structure surrounding it can determine whether securities rules apply.

Type 9 permits asset management, including discretionary management of portfolios containing securities or futures contracts. KUN Group described its prospective Type 9 scope as general asset management. The group said it plans to explore digital asset treasury management, asset and wealth management, supply-chain finance and asset tokenization, subject to further licences, approvals and regulatory requirements.

That qualification is central to the practical effect of the announcement. Approval-in-principle signals that the regulator has completed a significant part of its assessment, but a firm must satisfy remaining conditions before conducting the regulated business covered by the licences. Retail-facing virtual asset services also carry additional conduct, custody, disclosure and risk-management obligations under Hong Kong’s regulatory approach.

Payments business seeks a route into regulated digital finance

KUN Group’s existing operating structure is organized around cross-border digital payments, on-chain finance, card issuing and agentic payments. The group said the new licensing effort is intended to support further activity connecting those payment-oriented operations with regulated asset and wealth-management services.

Cross-border payment companies have increasingly examined tokenized assets and blockchain-based settlement tools as a way to move value more efficiently between markets. A securities licence does not itself authorize every payment or virtual asset activity, but it can allow a company to provide a more integrated service where investment products, advisory services and managed accounts are involved.

Tokenization, in this context, refers to representing an asset or financial claim on a blockchain. The model can apply to instruments such as funds, bonds, receivables or other assets, although the legal rights attached to a token depend on its structure and governing documents. In Hong Kong, tokenized products may fall within existing securities rules when they represent regulated investment interests.

KUN Group’s stated plans also include supply-chain finance, where companies use receivables, invoices or purchase orders to obtain financing. Combining that activity with tokenization would require careful legal structuring, particularly if a token represents an interest in a financing arrangement or is offered to the public.

Existing registrations span Hong Kong and overseas markets

The group already holds several licences and registrations in Hong Kong outside the newly announced SFC approval-in-principle. According to KUN Group, its local entities have a money service operator licence, a trust or company service provider licence, registration as a trust company under the Trustee Ordinance, and a money lenders licence.

Those permissions cover distinct activities and do not replace an SFC licence for securities dealing, securities advice or asset management. A money service operator licence, for example, relates to money-changing and remittance services. A trust or company service provider licence addresses services such as forming companies or acting as a trustee, while money-lending activities are governed under a separate licensing regime.

Outside Hong Kong, KUN Group said it has money services business registrations in the United States and Canada, as well as a virtual asset service provider registration in Poland. The company is also pursuing regulatory initiatives in Singapore, the Middle East and other markets.

The differing registrations illustrate the fragmented compliance environment facing firms that combine payments, digital assets and financial services. A registration in one jurisdiction does not automatically permit a company to market, advise on, trade or manage assets in another. Permissions depend on the specific activity, the entity conducting it and the clients being served.

Retail access raises the compliance bar

KUN Group’s reference to retail services is likely to draw particular attention because Hong Kong applies tighter safeguards where ordinary clients are offered virtual asset-related products. The SFC’s regulatory standards for licensed corporations focus on client suitability, token due diligence, disclosure of risks, custody arrangements, cybersecurity and anti-money-laundering controls.

The group’s approval-in-principle therefore creates a potential path to offer regulated services to a broader client base, while also subjecting the business to the operational demands associated with retail distribution. Any final offering would depend on the specific licence conditions and product approvals that apply.

The announcement reflects a strategic move by a payments-focused group toward the regulated side of digital finance. If the final licences are granted, KUN Group would be positioned to combine its cross-border payments and card operations with securities-related advice, transaction services and managed-asset products under Hong Kong supervision.