First Chinese Broker to Offer Licensed Crypto Trading: What It Means for Investors

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The financial world is watching closely as Guotai Junan International becomes the first mainland-backed securities firm in Hong Kong to receive regulatory approval for comprehensive virtual asset trading services. This landmark development signals a major shift in how traditional finance is embracing digital assets — and opens new doors for investors seeking regulated exposure to cryptocurrencies.

A New Era for Traditional Finance and Crypto

On June 24, Guotai Junan International (stock code: 01788.HK) announced it had successfully upgraded its existing securities license under the Hong Kong Securities and Futures Commission (SFC) framework to include virtual asset trading services and advisory capabilities. This means the firm can now legally offer clients direct access to trade major digital currencies such as Bitcoin, Ethereum, and stablecoins like USDT (Tether) — all within a fully compliant environment.

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This milestone positions Guotai Junan International at the forefront of the convergence between traditional capital markets and blockchain-based assets. The company can now also issue and distribute virtual asset-linked products, including over-the-counter derivatives, laying the foundation for more sophisticated investment strategies.

Strategic Moves Pave the Way

Guotai Junan International’s success didn’t happen overnight. The firm has been strategically building its digital finance capabilities since 2024, when it launched structured products based on spot Bitcoin and Ethereum ETFs — one of the first moves by a Chinese broker into crypto-linked instruments.

In early 2025, the firm further expanded its footprint by:

These incremental steps demonstrate a clear long-term vision: integrating blockchain-native financial instruments into mainstream brokerage offerings while maintaining strict regulatory compliance.

Why This Matters for the Market

The SFC currently authorizes 40 financial institutions to provide virtual asset trading services through integrated accounts. With Guotai Junan International now on that list, investor confidence in regulated crypto access is growing.

Market reaction was immediate. Following the announcement, shares of the broker surged nearly 90% at one point during intraday trading — although volatility quickly pulled gains back to flat by market close. Still, the ripple effect was felt across the sector:

This momentum reflects broader sentiment: traditional financial institutions entering crypto brings legitimacy, liquidity, and long-term growth potential.

The Role of Stablecoins in Global Finance

Stablecoins are emerging as a key bridge between fiat and digital economies. Recent developments highlight their rising importance:

Meanwhile, Hong Kong is positioning itself as a global virtual asset hub, with the upcoming Stablecoin Ordinance set to take effect on August 1, 2025. Under this law, any entity issuing fiat-backed stablecoins — especially those pegged to the Hong Kong dollar — must obtain an SFC license.

This regulatory clarity strengthens Hong Kong’s role not just as a financial gateway to China, but as a trusted node in cross-border digital payments, particularly along Belt and Road Initiative corridors.

Who Could Be Behind the Scenes? HashKey in Focus

While Guotai Junan hasn’t officially named its crypto exchange partner, industry analysts point to HashKey Exchange as a likely collaborator. According to Zhu Zhenyu, Sales Director at HashKey, the platform has already formed strategic alliances with several top-tier Chinese brokers and plans to expand further.

Such partnerships allow traditional brokers to leverage established, licensed trading infrastructure while focusing on client acquisition and wealth management — a win-win model gaining traction across Asia.

Other major players are following suit:

Broader Implications for Financial Innovation

As noted by CITIC Securities Research, traditional financial institutions are no longer passive observers in the crypto space. They're becoming active participants through:

Moreover, Haitong Securities suggests that stablecoins could transform brokers from mere transaction facilitators into asset tokenization engines and cross-border settlement hubs — roles that significantly enhance their valuation potential in a digitized economy.

👉 See how leading brokers are integrating crypto into mainstream investing — what’s next for digital asset adoption?

Frequently Asked Questions (FAQ)

What does “licensed crypto trading” mean?

It means the broker operates under official supervision (in this case, Hong Kong’s SFC) and complies with anti-money laundering (AML), know-your-customer (KYC), and capital reserve rules when offering crypto services.

Can all clients trade crypto with Guotai Junan International?

Eligibility depends on investor classification and jurisdiction. Currently, services are available to professional investors meeting SFC criteria, with potential expansion to retail clients as regulations evolve.

Which cryptocurrencies will be supported?

Initial offerings are expected to include Bitcoin (BTC), Ethereum (ETH), and major stablecoins like USDT and USDC, subject to platform listing policies.

How is this different from buying crypto on an exchange?

This integration allows investors to manage both traditional securities and digital assets within a single brokerage account — simplifying custody, reporting, and portfolio diversification.

Is Hong Kong becoming a crypto hub?

Yes. With clear regulations, tax incentives, and support for stablecoins and ETFs, Hong Kong aims to become Asia’s premier center for institutional-grade virtual asset activity.

What risks should investors consider?

While regulation reduces fraud risk, crypto prices remain highly volatile. Investors should assess their risk tolerance and avoid allocating more than they can afford to lose.

The Road Ahead: Institutional Adoption Accelerates

Guotai Junan International’s achievement isn’t just a corporate win — it’s a signal of deeper transformation. As more brokers gain licenses, we’re likely to see:

👉 Stay ahead of the institutional crypto revolution — learn how regulated access changes everything.

For investors, this evolution means safer, more accessible pathways into digital assets — without sacrificing compliance or security.

As Hong Kong continues to refine its regulatory framework and attract global players, the line between traditional finance and decentralized finance will blur even further. And firms like Guotai Junan International are proving that being first isn’t just about speed — it’s about vision.

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