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

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.