MC Group Expands Into Regulated Crypto Trading with Enhanced SFC License
Magic Compass Group (MC Group) has secured an important regulatory upgrade from Hong Kong’s Securities and Futures Commission (SFC), expanding its Type 1 license to cover virtual asset trading. This move officially places the firm in the growing crypto space, aligning with Hong Kong’s broader push to become a global hub for digital assets.
Magic Compass Group (MC Group) has secured an important regulatory upgrade from Hong Kong’s Securities and Futures Commission (SFC), expanding its Type 1 license to cover virtual asset trading. This move officially places the firm in the growing crypto space, aligning with Hong Kong’s broader push to become a global hub for digital assets.
Under the terms of the enhancement, MC Group can now offer virtual asset dealing services to clients already engaged in traditional securities trading. The offering will be facilitated through omnibus accounts maintained with SFC-licensed virtual asset trading platforms, ensuring compliance with local laws and regulatory protections.

This license enhancement allows MC Group’s clients to trade tokenized versions of real-world financial instruments—such as equities, bonds, and structured products—within a regulated framework. Additionally, clients will have access to cross-margining capabilities, which enable using traditional portfolios as collateral when taking positions in digital assets, creating more flexibility in capital deployment.
MC Group has committed to strict adherence to regulatory standards under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), including segregation of client assets, cybersecurity protocols, and regular independent audits. The firm will also implement real-time proof-of-reserve mechanisms using Merkle Tree verification to promote transparency and bolster client trust.
By enhancing its license and entering the regulated crypto market, MC Group positions itself as a trusted and compliant partner for institutions and sophisticated investors exploring virtual assets. This expansion supports a growing demand for secure, transparent, and efficient access to digital asset markets in Asia’s premier financial centre.
This license expansion comes as Hong Kong’s financial regulators support the crypto industry by expanding license options. On April 7, the SFC announced that licensed crypto firms can offer staking services under strict guidelines to protect investors and promote transparency. Staking allows customers to earn yields by locking up their assets, using a proof-of-stake consensus mechanism to generate and distribute returns.
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