The virtual asset market in Hong Kong is undergoing a transformative shift, as regulatory advancements and institutional participation fuel investor confidence and market momentum. At the center of this surge is Guotai Junan International Holdings Limited, a Hong Kong subsidiary of Guotai Haitong, which recently received approval from the Securities and Futures Commission of Hong Kong (SFC) to upgrade its existing Type 1 securities trading license. This enhancement now allows the firm to legally offer virtual asset trading services and related advisory services — making it the first mainland Chinese-backed securities firm in Hong Kong to provide comprehensive virtual asset trading solutions.
This landmark development sent shockwaves through financial markets. On June 25, Guotai Junan International’s stock surged nearly 200%, triggering a broader rally across the sector. The Hong Kong-based Chinese securities index jumped 11.75% in a single day, while A-share brokers like Tianfeng Securities hit their daily trading limits. East Money Information (Eastmoney) rose over 10%, and the overall Wind Securities Index climbed 5.52% on strong investor sentiment tied to virtual asset exposure.
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Expanded Market Access: 40 Institutions Now Licensed
According to the SFC, as of June 24, 2025, a total of 40 institutions have successfully upgraded their Type 1 licenses to support virtual asset trading under a comprehensive account framework. This regulatory evolution enables investors to access both traditional securities and digital assets — such as Bitcoin (BTC), Ethereum (ETH), and stablecoins like USDT — within a single integrated investment platform.
Among the approved firms are:
- Tianfeng International (affiliated with Tianfeng Securities)
- Harvest Securities (under East Money)
- Futu Securities (Hong Kong)
- Interactive Brokers (Hong Kong)
- China International Futures Securities
- ZA Bank, Hong Kong’s first licensed digital bank offering crypto trading to retail clients
Notably, ZA Bank has been pioneering in its approach, launching promotional campaigns such as zero-commission trading for the first 90 days and offering 24/7 trading support. However, it currently restricts external crypto deposits or withdrawals and only supports trading in BTC, ETH, AVAX, and LINK for Hong Kong residents.
This growing list reflects a strategic pivot by traditional financial players toward digital finance. Industry sources confirm that major mainland-backed brokers such as Huatai International and CMBI Securities (China Merchants) are actively pursuing similar license upgrades, signaling a broader trend of institutional adoption.
Building a Full-Service Digital Asset Ecosystem
Guotai Junan International’s journey into virtual assets began well before its recent license upgrade. In 2024, it became one of the first firms in Hong Kong to launch structured products based on spot virtual asset ETFs, laying early groundwork for diversified digital investment offerings.
By early 2025, the company had already secured permissions to:
- Distribute tokenized securities
- Provide investment advice on tokenized assets
- Launch digital bond issuance services
The June 2025 approval for direct virtual asset trading completes its end-to-end service chain — positioning it as a full-spectrum digital asset provider capable of handling trading, advisory, product creation, and distribution across both conventional and blockchain-based financial instruments.
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Regulatory Clarity Fuels Institutional Confidence
The SFC has taken deliberate steps to balance innovation with investor protection. It continues to emphasize that investors should only trade virtual assets on SFC-licensed platforms, warning against unregulated exchanges that pose significant custody and fraud risks.
As of mid-2025, there are:
- 11 officially licensed virtual asset trading platforms
- 6 spot ETFs
- 3 futures ETFs
Approved platforms include:
- OSL Digital Securities Limited
- Hash Blockchain Limited
- Hong Kong Virtual Asset Exchange Limited
- DFX Labs Company Limited
- Panthertrade (Hong Kong) Limited
- EXIO Limited
- Bullish HK Markets Limited
Three of these platforms originate from internet brokerage ecosystems:
- Leopard Trade (Hong Kong) – wholly owned by Futu
- YAX (Hong Kong) – subsidiary of Tiger Brokers
- Thousand Whales Technology (BVI) – backed by Webull (Huasheng Capital)
Beyond trading, the SFC has also approved:
- 37 firms upgrading their Type 4 license (advisory on virtual asset trades)
- 40 asset managers upgrading their Type 9 license (managing portfolios with >10% virtual asset allocation)
These developments underscore a maturing market structure where compliance, product diversity, and institutional infrastructure are converging.
The “A-S-P-I-Re” Roadmap: Guiding Market Growth
In February 2025, the SFC introduced its strategic “A-S-P-I-Re” framework, designed to guide the sustainable development of Hong Kong’s virtual asset market across five pillars:
- A – Access: Define who can operate legally
- S – Safeguard: Protect investor assets and ensure risk management
- P – Product: Expand offerings including ETFs, tokenized securities, and derivatives
- I – Infrastructure: Strengthen settlement systems, custody solutions, and platform stability
- Re – Relations: Foster global regulatory cooperation and cross-border market integration
This roadmap has given institutions clear direction, accelerating their compliance preparations and product development timelines.
FAQs About Hong Kong’s Virtual Asset Market
Q: What does upgrading a Type 1 license allow?
A: It permits licensed brokers to offer virtual asset trading services — such as buying and selling cryptocurrencies — alongside traditional securities under a unified account system.
Q: Can all investors access virtual asset trading in Hong Kong?
A: While retail access is permitted on licensed platforms, some brokerages may restrict services to professional or qualified investors depending on internal risk policies.
Q: Are stablecoins included in approved trading assets?
A: Yes, regulated platforms commonly support major stablecoins like Tether (USDT), provided they meet transparency and reserve requirements.
Q: How does the SFC protect investors in crypto trading?
A: Through mandatory licensing, strict custody rules, regular audits, and requirements for fair pricing and anti-money laundering controls.
Q: Is Hong Kong becoming a global crypto hub?
A: With clear regulations, institutional participation, and product innovation — including spot and futures ETFs — Hong Kong is positioning itself as Asia’s leading regulated digital asset gateway.
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Looking Ahead: A New Era for Financial Services
The rapid rise of Guotai Junan International’s stock is not just a short-term speculation — it reflects deeper structural changes in finance. As more traditional brokers integrate blockchain-based assets into their offerings, the line between conventional investing and digital wealth management continues to blur.
With over 40 firms now authorized to offer virtual asset services — spanning brokers, banks, and fintech platforms — Hong Kong’s financial ecosystem is evolving into a hybrid model that embraces innovation while maintaining regulatory rigor.
For investors, this means greater access to diversified digital portfolios. For institutions, it opens new revenue streams through trading fees, advisory services, and structured product issuance.
As Huatai International and other major players confirm they are advancing their applications, the next wave of approvals could further deepen market liquidity and expand retail participation.
The message is clear: virtual assets are no longer niche. They are becoming an integral part of mainstream finance — and Hong Kong is leading the charge with a balanced, forward-looking regulatory approach that prioritizes both growth and safety.