In Hong Kong’s fast-evolving digital-asset market, the bar for compliance just got higher. YAX, a wholly owned subsidiary of UP Fintech Holding Ltd (Nasdaq: TIGR), has partnered with Solidus Labs to strengthen its crypto-native transaction monitoring framework—part of its push to meet the Hong Kong Securities and Futures Commission (HKSFC) standards for licensed Virtual Asset Trading Platforms (VATPs).

Meeting Hong Kong’s New Compliance Reality

As the HKSFC tightens oversight on virtual asset exchanges, compliance has become more than a checkbox—it’s a differentiator. Through this collaboration, YAX has deployed Solidus HALO Transaction Monitoring, a behavioral analytics solution built specifically for crypto markets. The system provides unified oversight across onchain and offchain transactions, empowering compliance teams to spot and investigate complex fraud and money-mule networks before they spiral into regulatory risks.

“Ensuring YAX meets the HKSFC’s AML and transaction-monitoring standards is a cornerstone of our compliance framework,” said Hugo Wong, Head of Compliance at YAX. “We chose Solidus Labs because their behavioral-based approach can identify subtle, layered risks across the full spectrum of digital-asset activities.”

Crypto-Native Compliance Comes of Age

Solidus Labs has emerged as a go-to player for exchanges and trading platforms aiming to keep up with regulators while managing crypto’s unique market dynamics. Its HALO platform merges AI-powered behavioral analytics with onchain/offchain data synthesis, giving operators real-time insight into suspicious transactions that traditional monitoring systems often miss.

“Our collaboration with YAX, backed by Tiger Brokers, reflects the growing shift toward crypto-native compliance,” said Justin Lin, Director of Customer Success, APAC at Solidus Labs. “We’re enabling unified oversight of crypto-fiat flows and detecting sophisticated fraud typologies specific to digital-asset markets.”

Future-Proofing Against Financial Crime

For YAX, the move signals a strategic commitment to “future-proof” its compliance capabilities as crypto typologies evolve. The company’s monitoring framework now leverages algorithms that can adapt to emerging threats—from layering and wash trading to wallet-hopping schemes designed to obfuscate illicit funds.

By integrating Solidus HALO, YAX gains a single dashboard for analyzing suspicious crypto and fiat transactions, simplifying compliance operations while boosting visibility across trading activities. That’s no small feat in a market where traditional financial controls often lag behind the pace of innovation.

Why It Matters

The partnership comes as Hong Kong doubles down on regulating its VATP ecosystem, aiming to attract institutional capital without compromising on oversight. Competitors such as OSL and HashKey have already secured licenses under the HKSFC’s new regime, and YAX’s alignment with those standards puts it squarely in the running for institutional credibility.

In short, YAX isn’t just ticking regulatory boxes—it’s positioning itself as part of Hong Kong’s next generation of regulated, transparent, and secure digital-asset platforms.