China Merchants Bank's CMBI Secures Hong Kong Virtual Assets License

China Merchants Bank’s brokerage arm, CMBI, has secured a virtual assets license from the Securities and Futures Commission in Hong Kong, marking a significant milestone as the first Mainland China broker to achieve this. This license enables CMBI to offer a range of services, including trading, custody, and advisory services. These services encompass advice on investment strategies, risk management, and regulatory compliance, positioning CMBI as a key player in the region's growing digital asset market.

The license allows CMBI to provide regulated access to Hong Kong’s dynamic crypto market, although it must operate within strict boundaries that prevent direct mainland participation. This reflects the delicate balance between innovation and legal constraints in the region. The move underscores the increasing interest among mainland brokers with international operations to gain virtual asset licenses in Hong Kong, aiming to attract global investors.

Authorized mainland brokers can create omnibus accounts on Hong Kong’s eleven licensed crypto trading platforms. These accounts consolidate the assets of multiple clients into a single account, allowing users to access major coins and stablecoins. This development is part of a broader effort by Hong Kong to establish itself as a premier global hub for digital assets. The region has been actively working on advancing its virtual asset plans, supported by mainland China, although the services offered by CMBI in Hong Kong remain forbidden on the mainland.

In late June, the Financial Services and the Treasury Bureau and the Securities and Futures Commission launched a joint public consultation on legislative proposals for establishing licensing regimes for digital asset dealing and custodian service providers. This consultation, which will last until August 29, aims to further solidify Hong Kong’s position as a leading digital asset hub. The city’s novel stablecoin ordinance will take effect on August 1, when the Hong Kong Monetary Authority begins accepting formal applications. The government is processing license inquiries from numerous companies, indicating a high level of interest in the digital asset space.