Hong Kong Approves Guotai Junan International and Victory Securities for Cryptocurrency Trading

Guotai Junan International and Victory Securities have received approval to offer regulated cryptocurrency trading services in Hong Kong as of June 2025. This development marks a significant milestone in the region's financial landscape, as it allows these brokerages to provide virtual asset trading services and related advisory services through omnibus accounts on licensed virtual asset trading platforms. The approval is expected to enhance the liquidity of Hong Kong's financial markets and facilitate the integration of mainland financial regulations with international standards.

The involvement of state-backed institutions, such as Guotai Junan International, signals a positive stance from the central government regarding Chinese brokerages participating in virtual assets outside the mainland. This approval is seen as an encouraging message for the market, indicating that traditional financial institutions are increasingly ready to engage in the virtual asset market. The Securities and Futures Commission's decision to upgrade licenses for these brokerages demonstrates the growing maturity of Hong Kong's regulatory environment, creating favorable conditions for traditional players to operate in this innovative field.

Industry experts have highlighted that this development will not only benefit mainland investors by providing them with regulated access to global virtual asset markets but also offer international investors in Hong Kong a broader range of compliant virtual asset products. The approval of these licenses is expected to accelerate the alignment of mainland financial regulations with international standards, promoting the integration of mainland capital into global virtual asset markets.

However, given the prohibition of virtual currency trading on the mainland, Chinese brokerages venturing into Hong Kong markets are likely to adopt a measured approach in the short term. This cautious strategy is aimed at ensuring compliance with regulatory requirements and mitigating potential risks associated with the volatile nature of cryptocurrencies. Despite this, the overall sentiment remains positive, with more conventional financial institutions expected to follow suit and assess their capabilities in digital asset custody, trading, and issuance. This trend is likely to drive further innovation in the fintech sector, as traditional financial institutions seek to tap into the opportunities presented by digital assets.