Hong Kong's virtual asset market achieves a major breakthrough: The first Chinese-funded brokerage firm has been approved for a trading license.

On June 25, 2025, the Hong Kong financial market reached an important milestone. A well-known Chinese brokerage announced that its wholly-owned subsidiary had obtained approval from the Hong Kong Securities and Futures Commission to upgrade its existing Type 1 (Securities Trading) regulated activity license to provide virtual asset trading services. This marks the company as the first Chinese brokerage authorized to offer comprehensive virtual asset trading services in Hong Kong, opening up a convenient channel for its clients to directly trade mainstream cryptocurrencies and stablecoins such as Bitcoin, Ethereum, and Tether.

After the announcement, the market reacted exceptionally vigorously. The company's Hong Kong stock price soared more than 80% upon opening, with an intraday peak increase of over 100%, fully reflecting investors' strong confidence in this strategic breakthrough. At the same time, the stock price of another listed company holding a significant amount of circulating shares of this company also rose in response, with an intraday increase exceeding 8%, demonstrating the market's broad optimism toward the virtual asset trading sector.

The recent license upgrade is an important embodiment of Hong Kong's active strategy to build a global core hub for virtual assets. Since adopting a cautious regulatory stance in 2017, Hong Kong released relevant policy declarations in 2022, clearly stating the strategic goal of building an Asian crypto asset center. In recent years, Hong Kong has constructed a regulatory framework for digital assets that encourages innovation while emphasizing risk prevention through a series of measures, including regulating virtual asset trading platforms, issuing the world's first government-backed tokenized green bonds, and approving the first virtual asset spot ETFs in Asia.

In early 2025, the Hong Kong Securities and Futures Commission released a regulatory roadmap for the virtual asset market, further clarifying the policy direction to support market development. In May, the passage of the "Stablecoin Regulation Draft" was seen as a key step for Hong Kong to integrate into the global digital asset ecosystem, laying the foundation for its competitive advantage in cross-border payments and currency internationalization.

Against this backdrop, the breakthrough of this Chinese-funded brokerage is not only a milestone in the company's own development but also reflects the trend of traditional financial institutions actively responding to Hong Kong's policy direction and deeply participating in the virtual asset industry. Industry analysts point out that leveraging the innovative collaboration and open market advantages of the Guangdong-Hong Kong-Macao Greater Bay Area, Hong Kong is accelerating the consolidation of its global virtual asset hub status. Traditional financial institutions are aligning with the trend of cryptocurrency integration into the financial ecosystem by strengthening their license layout and business expansion.

The approved license not only allows the company to provide virtual asset trading services but also includes offering professional advice during the trading process, as well as issuing and distributing virtual asset-related products, including over-the-counter derivatives. This makes it the first Hong Kong-based Chinese securities firm capable of providing comprehensive virtual asset trading services, covering various dimensions such as brokerage business, consulting services, and product issuance.

In fact, the company has long been active in the virtual asset sector. In 2024, it will be the first to launch structured products based on virtual asset spot ETFs and will be authorized to conduct virtual asset trading platform introduction agent business. In the first half of 2025, the company further obtained permission from the Hong Kong Securities and Futures Commission to distribute tokenized securities to clients and provide related professional advice, while also initiating digital bond issuance business. This license upgrade represents a key link in the virtual asset business ecosystem, achieving a closed-loop layout from product design, trading services to consulting support.

Clients of this Chinese-funded brokerage will be able to trade mainstream cryptocurrencies and stablecoins directly through its platform, enjoying a seamlessly integrated comprehensive account service. This innovation not only enhances the customer experience but also provides new momentum for the company to attract young investors and strengthen its competitive position in the Hong Kong financial market.

Industry analysis suggests that more brokerage firms with international business subsidiaries are expected to complete the upgrade of their Type 1 licenses and enter the virtual asset trading service sector, further improving the ecosystem of the Hong Kong market. Leading brokerage firms with a strong customer base entering the market will drive the continuous development of the cryptocurrency and virtual asset trading ecosystem in Hong Kong.

Globally, traditional financial institutions are entering the virtual asset industry with unprecedented breadth and depth. In the brokerage business, several well-known securities firms have partnered with virtual asset trading platforms to offer clients cryptocurrency trading functions. In asset management, international financial giants have launched Bitcoin spot ETFs, and institutions in Hong Kong have developed new products such as tokenized currency funds. In investment banking, virtual asset companies are going public one after another, and mergers and acquisitions in the industry are thriving, bringing new opportunities for brokers.

Although the virtual asset market has a broad outlook, its high volatility also places higher demands on investors. The professional consulting services provided by this Chinese brokerage will help clients better understand market dynamics and make rational investment decisions. The company also reminds shareholders and potential investors to act cautiously when buying or selling the company's securities.