Hong Kong’s OSL Jumps 18% After Virtual Asset Licensing Milestone

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Hong Kong’s regulated virtual asset ecosystem is gaining momentum, with OSL Group’s share price surging 18% to HK$14.60 on June 25 — marking its highest level in a year. This notable uptick followed the Hong Kong Securities and Futures Commission (SFC) granting Guotai Junan International an upgraded license to offer virtual asset trading services. The broader market responded enthusiastically, reflecting growing investor confidence in Hong Kong’s structured approach to crypto regulation.

The rally wasn’t limited to OSL. HashKey, another licensed virtual asset exchange in Hong Kong, saw its native token HSK climb over 50% on the same day. Meanwhile, Guotai Junan International’s stock soared more than 200% after the announcement, underscoring the market’s strong appetite for institutional-grade digital asset infrastructure.

Guotai Junan Secures Key Virtual Asset License Upgrade

Guotai Junan Securities, part of the Guotai Haitong Group, received an upgraded Type 1 license from the SFC on Wednesday. This allows the firm to provide virtual asset trading services under defined regulatory terms, including advisory services and access to approved platforms for trading major digital assets such as Bitcoin (BTC), Ethereum (ETH), and stablecoins.

This milestone makes Guotai Junan the first mainland Chinese brokerage to obtain formal approval for virtual asset trading operations in Hong Kong — a significant development amid increasing institutional participation in the region’s Web3 and digital asset space.

👉 Discover how institutional adoption is reshaping Asia’s crypto landscape.

Market observers suggest this regulatory green light could pave the way for broader financial integration. One notable speculation centers around Yao Cai Securities, recently acquired by Ant Group. Analysts theorize that Alipay — Ant Group’s widely used payment platform — could eventually facilitate BTC and ETH trading through Yao Cai’s licensed infrastructure.

"Guotai Junan's upgraded license is a game-changer. It validates Hong Kong as a compliant gateway for Chinese institutions entering crypto," said a financial analyst tracking the region’s fintech evolution.

Since launching its comprehensive virtual asset regulatory framework in June 2023, Hong Kong has steadily built a compliant ecosystem for digital assets. The SFC requires all service providers to obtain licensing under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), ensuring strict oversight to prevent illicit financial flows.

Currently, around 40 brokerages have applied for or received license upgrades to support virtual asset trading. Notable names include Tiger Brokers’ Hong Kong subsidiary, Futu Securities, and Qianjing Technology — all positioning themselves at the intersection of traditional finance and digital innovation.

Hong Kong Sets High Bar for Stablecoin Issuers

In May 2025, the Hong Kong Monetary Authority (HKMA) passed the Stablecoin Ordinance, establishing a licensing regime for issuers of fiat-referenced stablecoins. Set to take effect on August 1, 2025, the law mandates that any entity issuing stablecoins pegged to fiat currencies — including the Hong Kong dollar or USD — must secure prior approval from the HKMA.

“This ordinance marks a critical step in strengthening Hong Kong’s regulatory framework for digital assets, safeguarding monetary and financial stability, and reinforcing our position as a global financial hub.”
– Mr. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority

The HKMA is currently consulting on detailed implementation guidelines and expects to begin accepting applications shortly after the law takes effect. While participation in last year’s stablecoin sandbox was encouraged, it is not a prerequisite for licensing — nor does it guarantee approval. The authority emphasized a cautious, risk-based approach to onboarding qualified issuers.

The new framework follows the “same activity, same risk, same regulation” principle, aligning closely with international standards set by the Financial Stability Board (FSB), particularly its 2023 Global Framework for Crypto-Asset Regulation. By integrating global best practices while tailoring rules to local needs, Hong Kong aims to balance innovation with systemic safety.

Key safeguards include:

The HKMA plans to issue only a limited number of licenses in the initial phase, prioritizing issuers with robust risk controls and strong governance frameworks. This selective approach underscores Hong Kong’s commitment to quality over quantity in building a sustainable digital asset market.

👉 Learn how stablecoin regulation is shaping the future of digital finance.

Strategic Vision: Building a Responsible Digital Asset Hub

Hong Kong’s dual-track regulatory approach — led by the SFC for exchanges and brokerages, and the HKMA for stablecoins — reflects a coordinated strategy to foster innovation while mitigating systemic risks. Both regulators are actively involved in international forums such as the G20 and FSB, ensuring alignment with evolving global standards.

A critical unanswered question remains: how will privately issued stablecoins interact with central bank digital currencies (CBDCs) like the digital Hong Kong dollar? The HKMA has indicated ongoing research into interoperability between public and private digital money systems, aiming to create a seamless, secure financial ecosystem.

By setting high entry barriers and enforcing rigorous compliance, Hong Kong is positioning itself not just as a regional crypto hub, but as a global benchmark for responsible digital asset development.

Frequently Asked Questions (FAQ)

Q: Why did OSL’s stock rise after Guotai Junan’s license approval?
A: OSL is one of Hong Kong’s first licensed virtual asset exchanges. The approval of another major institution like Guotai Junan signals growing market legitimacy and increased demand for compliant crypto infrastructure — boosting investor confidence across the sector.

Q: What does Guotai Junan’s upgraded Type 1 license allow?
A: It permits the firm to offer virtual asset trading services, including client advisory and execution via SFC-approved platforms for assets like Bitcoin, Ethereum, and regulated stablecoins.

Q: Are stablecoins legal in Hong Kong now?
A: Yes — but only if issued by licensed entities. Starting August 1, 2025, all fiat-referenced stablecoins must be issued under the HKMA’s new licensing regime.

Q: Can mainland Chinese firms operate crypto businesses in Hong Kong?
A: Yes — through subsidiaries or partnerships in Hong Kong. Guotai Junan International is a prime example of a mainland-affiliated firm expanding into crypto under Hong Kong’s regulatory framework.

Q: Is participation in the HKMA’s stablecoin sandbox required for licensing?
A: No. While the sandbox helped test regulatory models, it is not a prerequisite for obtaining a license. Each application will be assessed independently based on compliance and risk management.

Q: How does Hong Kong’s crypto regulation compare globally?
A: Hong Kong combines strict AML/CFT standards with proactive innovation support. Its rules mirror international frameworks like the FSB’s while offering clear pathways for institutional participation — making it one of Asia’s most balanced and forward-looking jurisdictions.

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Core Keywords

With clear regulations, rising institutional interest, and strong government backing, Hong Kong continues to solidify its role as a leading hub for compliant digital asset innovation in Asia and beyond.