YAX Teams Up With Solidus Labs to Elevate Crypto Compliance in Hong Kong

YAX has deployed Solidus’ “HALO Transaction Monitoring” platform, enabling unified oversight of both on-chain and off-chain activities in alignment with the regulatory requirements of the Securities and Futures Commission (SFC).

Under the partnership YAX’s compliance team will use HALO’s behavioral-analytics engine to detect sophisticated fraud schemes, money-mule networks and layered financial-crime typologies which are increasingly prevalent in digital-asset markets. The press release emphasizes this joint effort is “a cornerstone” of YAX’s compliance framework.

Under the partnership, YAX's compliance team will use HALO's behavioral-analytics engine to detect sophisticated fraud schemes, money-mule networks and layered financial-crime typologies that are increasingly prevalent in digital-asset markets. This joint effort has been described as "a cornerstone" of its compliance framework in the press release.

This move follows Hong Kong’s ongoing development of its virtual-asset regulatory framework, where licensed trading platforms are expected to maintain higher standards of transparency and operational oversight. YAX holds both a Type 1 (dealing in securities) and Type 7 (automated-trading-services) license from the SFC, as well as a virtual-asset trading-platform operator license under Hong Kong's regulatory framework.

In effect, institutional-grade crypto exchanges operating in Hong Kong today need to be able to monitor and intervene across both fiat rails and blockchain flows. Solidus touts its HALO product as a "crypto-native trade-surveillance and transaction-monitoring" solution: it synthesizes on-chain wallet flows, off-chain fiat movements, identity-behavior signals, and machine-learning risk models into a single unified dashboard.

YAX's compliance lead, Hugo Wong, said the selection of Solidus Labs was driven by "their deep understanding of crypto market behaviors and their ability to detect risk across both on-chain and off-chain environments." Meanwhile, Solidus Director Justin Lin stated the partnership "reflects the important shift toward crypto-native transaction monitoring that meets the HK SFC's expectations for licensed VATPs."

Operating under the CE reference number BUT913 in Hong Kong, YAX has been licensed since January 2025. The SFC lists YAX on its list of licensed virtual-asset trading platforms, proof that the firm has complied with Hong Kong's regulatory regime.

By adopting HALO, YAX expects to strengthen protection of client funds, improve visibility across user flows and bolster resilience against emerging digital-asset threats as the market typologies evolve.

From a regulatory policy standpoint, this is a well-timed announcement. The SFC's guidance to VATPs puts a premium on the need for platforms to institute sound systems for monitoring transactions, token-listing governance, risk controls, event-reporting, and investor-protection measures. Meanwhile, compliance-technology providers such as Solidus Labs are positioning themselves to act as "crypto-native" monitoring hubs to cater to the cross-rail nature of assets that straddle both blockchain and traditional finance.

Beyond protecting the various different platforms, YAX's use of a high-grade monitoring platform also signals to institutional investors and regulators alike that Hong Kong's virtual-asset market is maturing. As the ecosystem increasingly shifts toward a combination of traditional compliance with real-time behavioral analytics, it is moving away from legacy templated systems to dynamic, data-driven infrastructures.

Of course, operationalizing these systems is easier said than done. Data integration across the fiat rails and multiple blockchains, modeling evolving fraud typology, calibrating machine learning thresholds for low-latency alerting, and ensuring audit trail readiness for regulators are all non-trivial tasks that have to be overcome. There is, too, a regulatory burden of making sure monitoring extends to new modalities like tokenized securities, hybrid CeFi/DeFi flows, and peer-to-peer over-the-counter transactions, areas the SFC has signaled as next-phase priorities.

In theory, for YAX users, this upgrade means better protection; in practice, the proof will be in how the system performs in live conditions, how threshold management is done around alerts, and what happens in investigations after suspicious flows get flagged.

YAX's partnership with Solidus Labs is a meaningful step in the ongoing professionalization of Hong Kong's digital-asset trading infrastructure. It reflects a broader industry pivot toward embedding crypto-native compliance tooling at the heart of exchange operations.