The Hong Kong securities market has witnessed a groundbreaking development with the entry of a major Chinese brokerage into the virtual asset trading space. Guotai Junan International Holdings Limited has become the first Chinese-backed securities firm to receive regulatory approval for providing comprehensive virtual asset trading services in Hong Kong. This move allows its clients to directly trade cryptocurrencies, including Bitcoin and Ethereum, as well as stablecoins like USDT, through its established platform.
The announcement triggered a significant market reaction. Guotai Junan International’s stock price surged by nearly 200% on the day of the news, reaching a decade-high. The broader sector also reacted positively, with many Hong Kong-listed brokerages and A-share stablecoin-related concepts recording substantial gains.
This strategic expansion is expected to open new revenue streams for the firm, enhance its competitive position among Chinese securities companies, and accelerate the overall involvement of traditional financial institutions in the digital asset ecosystem.
Guotai Junan International Secures Full Virtual Asset License
On June 24, Guotai Junan International announced that it had received approval from the Securities and Futures Commission (SFC) of Hong Kong to upgrade its existing securities trading license. The enhanced license permits the firm to offer virtual asset trading services, provide investment advice on virtual assets, and issue and distribute virtual asset-related products, including over-the-counter derivatives.
This regulatory milestone means that clients of Guotai Junan International can now trade major cryptocurrencies and stablecoins directly on the broker’s platform.
As a leading international subsidiary of a major Chinese securities group and the first of its kind to list via an IPO in Hong Kong, Guotai Junan International has core operations spanning wealth management, brokerage, investment banking, lending, asset management, and financial products.
The company’s early moves in digital finance paved the way for this achievement. In 2024, it introduced structured products based on spot virtual asset ETFs in Hong Kong and was authorized to operate as an introducing agent for virtual asset trading platforms. By the first half of 2025, the firm also received SFC approval to distribute tokenized securities and provide related advice, subsequently launching digital bond issuance services.
With the latest license upgrade, Guotai Junan International has now established a complete ecosystem for virtual asset services, positioning itself as the first Chinese-backed brokerage in Hong Kong capable of offering end-to-end virtual asset trading.
The company has expressed its commitment to further integrating fintech with virtual asset operations, enhancing its product offerings, and supporting Hong Kong’s development as a global virtual asset hub. Investors are expected to benefit from a more secure, compliant, and professional trading experience.
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Reshaping Hong Kong’s Virtual Asset Intermediary Market
The introduction of virtual asset services by traditional brokerages is set to reshape the competitive landscape of Hong Kong’s financial intermediation market.
Under current Hong Kong regulations, entities engaging in virtual asset activities must operate within a structured licensing framework. This includes:
- Virtual Asset Trading Platforms (VATPs): Require VASP licensing, often in combination with Type 1 (dealing in securities) and Type 7 (automated trading services) licenses. Those holding client funds may also need a Type 9 (asset management) license.
- Stablecoin Issuance: Issuers must obtain a specific stablecoin license, with custody services requiring approval for recognized banking institutions.
- Virtual Asset Funds and Management: Must be permitted by the SFC, comply with disclosure requirements, and serve professional investors only.
- Virtual Asset Trading Services: Intermediaries with a Type 1 license can offer virtual asset trading services classified as “securities,” but must partner with SFC-licensed VATPs.
According to the SFC, intermediaries licensed for Type 1 and/or Type 4 (advising on securities) activities may provide virtual asset trading and advisory services to existing clients.
To date, 11 virtual asset trading platforms have received full approval from the SFC to operate in Hong Kong. It is reported that Guotai Junan International is cooperating with HashKey Exchange, one of the leading licensed platforms.
Multiple financial institutions in Hong Kong are accelerating their entry into the virtual asset sector. Several brokerages—including Tiger Brokers, Victory Securities, Interactive Brokers, and Futu Securities—have already upgraded their licenses or launched crypto services.
For instance, Tiger Brokers upgraded its Type 1 license in early 2024 to allow professional investors to trade virtual assets via SFC-licensed platforms. By May 2024, it had officially rolled out crypto trading, becoming one of the first tech-backed brokers in Hong Kong to support both traditional securities and digital assets within a single platform.
The entry of major brokerages presents both challenges and opportunities for incumbent VATPs like OSL and HashKey. While traditional brokers bring extensive client networks and mature compliance systems—potentially diverting trading volume—they also open doors for collaboration under regulatory frameworks.
According to Zeus Zhu, Sales Director of HashKey Exchange, many Chinese securities firms are entering the virtual asset market through diversified product strategies, differentiated services, and partnerships with licensed entities or fintech firms. HashKey has established deep cooperation with several top Chinese brokerages, including some ranked in the top five and ten by size. Through its omnibus brokerage model, HashKey enables investors on partner platforms to deposit and withdraw virtual assets.
Zhu also revealed that HashKey is actively seeking collaborations with commercial banks, large internet firms, and payment institutions to expand the virtual asset service ecosystem.
Chinese Brokerages Enter the Virtual Asset Arena
Guotai Junan International’s landmark approval is likely to encourage other major Chinese brokerages with international operations to enter the virtual asset trading market.
Industry sources indicate that other prominent firms such as CITIC Securities and Haitong International are closely monitoring the situation and may accelerate their own virtual asset strategies. It is anticipated that more Chinese financial institutions will upgrade their licenses within the next one to two years.
A representative from CITIC Securities confirmed that the company is already planning its virtual asset business. An internal source from Xingye Securities’ international subsidiary, HG International Financial Group, mentioned that the company held meetings to discuss market developments and is evaluating potential steps.
Similarly, a representative from China-Linong Group indicated that its Hong Kong subsidiary is preparing application materials to seek the same virtual asset trading资格 that Guotai Junan International recently obtained.
However, mid-sized and smaller brokerages may proceed more cautiously or slowly due to smaller international operations, compliance costs, and regulatory considerations. Some mid-sized firms have stated that they have no immediate plans to offer crypto services, citing the high sensitivity and complexity of virtual asset operations. Others admitted that their companies have not yet expanded into overseas securities business, let alone cryptocurrency markets.
According to a CITIC Securities research report, Chinese brokerages can engage in virtual asset-related businesses across multiple dimensions, including:
- Brokerage services: Offering trading channels for cryptocurrencies.
- Equity investments: Investing in virtual asset-related ventures.
- Trading and investment services: Providing liquidity and market-making.
- Investment banking: Supporting tokenized securities issuance.
- Asset management: Creating and managing crypto-based funds.
For brokerage services in particular, firms can partner with licensed VATPs or use their own systems to link traditional securities accounts with virtual asset trading. Futu Securities partnered with HashKey, while Interactive Brokers teamed up with OSL Group to enable crypto trading for their clients. Robinhood has offered cryptocurrency trading in the U.S. since 2018.
For retail investors, the involvement of established brokerages significantly lowers the barrier to compliant cryptocurrency trading. Instead of registering with a separate crypto exchange, investors can now trade digital assets through their existing securities accounts, benefiting from enhanced security, transparency, and convenience.
As noted by Tian Lihui, Dean of the Institute of Financial Development at Nankai University, the participation of traditional brokerages signals the gradual integration of virtual assets into the mainstream financial system. Investors gain access to professional advice and risk management tools—such as OTC derivatives—which can help reduce speculative risks and support the market’s transition from retail-driven to institutionally dominated.
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Frequently Asked Questions
What does Guotai Junan International’s new license allow?
The upgraded license permits the brokerage to offer virtual asset trading services, provide investment advice on cryptocurrencies, and issue and distribute virtual asset-linked products such as derivatives and tokenized securities.
Which other brokerages offer virtual asset trading in Hong Kong?
Several brokerages already provide crypto services, including Tiger Brokers, Victory Securities, Interactive Brokers, and Futu Securities. More Chinese-backed firms are expected to follow.
How does this impact retail investors?
Investors can trade cryptocurrencies directly through their securities accounts without opening separate exchange accounts. This offers a more familiar, compliant, and potentially safer environment for digital asset investments.
What are the risks of trading virtual assets through brokers?
While trading via licensed brokers may reduce operational and counterparty risks, virtual assets remain volatile. Investors should assess their risk tolerance and use available risk management tools.
Are there limitations on who can trade?
Currently, services may be limited to professional investors depending on the product and licensing conditions. Always check specific platform eligibility requirements.
What types of virtual assets can be traded?
Major cryptocurrencies like Bitcoin and Ethereum, stablecoins such as USDT, and other SFC-approved virtual assets are typically available for trading.