FTFT Announces its Formal Application for a VASP License in Hong Kong to Vigorously Expand into the Virtual Asset Sector

Rhea-AI Summary

Future FinTech (NASDAQ: FTFT) has announced that its Hong Kong subsidiary, Future Securities, is applying for a Type 1 Virtual Asset Service Provider (VASP) license and a Type 9 Asset Management License from Hong Kong's Securities and Futures Commission (SFC). The company has partnered with a renowned Hong Kong compliance consultant to assist with the application process.

Future Securities, established in 2010, currently holds Hong Kong Licenses Type 1, 2, and 4, and provides traditional financial services including stocks, bonds, and funds trading. The VASP license will enable the company to legally conduct virtual asset-related businesses, particularly cryptocurrency trading through electronic facilities.

The strategic move aims to expand FTFT's financial services portfolio into the growing virtual asset market while operating within Hong Kong's regulatory framework.

Positive

• Expansion into virtual asset services through VASP license application
• Already holds multiple financial licenses (Type 1, 2, and 4) in Hong Kong
• Partnership with renowned compliance consultant for application process
• Strategic positioning in Hong Kong's regulated virtual asset market

Negative

• License approval is pending and not guaranteed
• Will require significant investment in compliance and risk management systems
• Entering a highly competitive and volatile virtual asset market

NEW YORK, Aug. 11, 2025 /PRNewswire/ -- Future FinTech Group Inc. (NASDAQ: FTFT), (hereinafter referred to as "Future FinTech", "FTFT" or the "Company"), a comprehensive financial and digital technology service provider, announced today that its wholly-owned Hong Kong subsidiary, Future International Securities and Futures Limited ("Future Securities") has signed a commission agreement with a renowned Hong Kong compliance consultant. The consultant will help the Company to apply for a Hong Kong Type 1 Virtual Asset Service Provider (VASP) license from the Securities and Futures Commission (SFC) of Hong Kong while also applying for a Type 9 Asset Management License; this builds upon Future Securities' existing Hong Kong Licenses Type 1, 2 and 4.

Together with FTFT's Real-World Asset division, the compliance consultant will conduct a comprehensive review of the Company's business model and risk management capabilities, and will assist in preparing application materials and a business plan for submission to the SFC of Hong Kong. The Hong Kong VASP license covers services related to virtual assets such as cryptocurrency trading through electronic facilities. This move marks a significant step for the Company in expanding its financial services portfolio and embracing an emerging fintech sector.

FTFT's Future Securities has consistently upheld the principles of professionalism, innovation and stability. The firm has extensive experience and a strong reputation in traditional financial services. Its professional team is comprised of seasoned financial experts who have deep market insight and exceptional risk management capabilities, and they provide clients with diversified financial products and services including stocks, bonds, and funds. Founded in 2010, Future Securities has gained the trust and support of investors through its high-quality services and outstanding performance.

With the rapid growth of the global virtual asset market, Future Securities has recognized the immense potential and vast opportunities in this emerging field. As a new class of financial assets, virtual assets have attracted growing global attention in recent years, driving continued expansion of the market. Hong Kong, as an international financial hub, features a strong financial regulatory framework and a well-developed market as well as a proactive and open approach to overseeing and fostering the growth of virtual assets. Against this backdrop, Future Securities has decided to apply for an upgraded Hong Kong Type 1 VASP license, aiming to provide clients with more comprehensive and diversified financial services that meet their investment needs.

Upon successful acquisition of the VASP license, Future Securities will be authorized to conduct virtual asset-related business within a compliance framework. This development will not only provide clients with diversified investment options but also enhance the Company's market competitiveness and industry presence. Meanwhile, Future Securities will adhere to all of the regulatory requirements set by the SFC of Hong Kong, and will establish robust risk management systems and compliance mechanisms to ensure stable growth of its virtual asset operations while safeguarding investors' rights and interests.

Future Securities has prioritized compliance and risk management during the application process. The firm established a dedicated team to prepare application materials while collaborating closely with professional legal and compliance advisors to ensure progress. Future Securities has actively participated in virtual asset industry seminars and discussions to gain an in-depth understanding of its regulatory policies and market trends, thereby further preparing for launch of its virtual asset business.

FTFT CEO Mr. Hu Li commented, "Future Securities' application for upgrading its Hong Kong VASP license represents not only a key strategic move for our development but it also highlights the Hong Kong financial market's forward-thinking and openness as regards the virtual asset sector. We believe that with effective regulatory oversight and collaborative efforts from market participants, Hong Kong's virtual asset market will achieve orderly, healthy and sustainable growth."

"Upon obtaining approval for the VASP license by the Securities and Futures Commission of Hong Kong, we will be able to legally operate virtual asset-related businesses which will enhance our reputation, strengthen customer trust, and grant us access to the virtual asset market to capitalize on the opportunities and advantages offered by Hong Kong's well-stablished financial ecosystem," CEO Hu continued.  

"Looking ahead, Future Securities will actively explore innovations in the virtual asset field and leverage our strength in traditional finance to build a distinctive virtual asset service platform. Simultaneously, we will continually strengthen our risk management and compliance framework, while consistently enhancing service quality and client satisfaction to contribute to the healthy development of Hong Kong's virtual asset market," concluded CEO Hu.

About Future Fintech Group Inc.

Future FinTech Group Inc. (NASDAQ: FTFT) is a comprehensive financial and digital technology service provider. The Company, through its subsidiaries, conducts brokerage and investment banking services in Hong Kong, and engages in supply chain trading and finance businesses in China and efficient digital financial services. For more information, please visit www.ftft.com.

Safe Harbor Statement

Certain statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements regarding our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties, and other factors that may be beyond our control, which may cause the actual results, performance, capital, ownership, or achievements of the Company to be materially different from those implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements by our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions relating to the future.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, the risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2024 and our other reports and filings with the SEC. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise, or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements are otherwise made.

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SOURCE Future FinTech Group Inc.

FAQ

What type of license is Future FinTech (FTFT) applying for in Hong Kong?

FTFT is applying for a Type 1 Virtual Asset Service Provider (VASP) license and a Type 9 Asset Management License from Hong Kong's Securities and Futures Commission (SFC).

What existing licenses does FTFT's Future Securities hold in Hong Kong?

Future Securities currently holds Hong Kong Licenses Type 1, 2, and 4, allowing them to provide traditional financial services including stocks, bonds, and funds trading.

What services will FTFT be able to offer with the VASP license?

The VASP license will allow FTFT to conduct virtual asset-related businesses, particularly cryptocurrency trading through electronic facilities, within Hong Kong's regulatory framework.

When was Future Securities established and what services does it currently provide?

Future Securities was established in 2010 and currently provides diversified financial products and services including stocks, bonds, and funds.

How is FTFT preparing for the VASP license application?

FTFT has partnered with a renowned Hong Kong compliance consultant, established a dedicated team, and is working with legal advisors while participating in industry seminars to prepare for the application.