The financial landscape in Hong Kong is undergoing a transformative shift as traditional securities firms embrace the digital asset revolution. With evolving regulations and growing institutional interest, virtual asset trading is no longer a niche frontier—it's becoming a core component of modern financial services. At the forefront of this change, Guotai Junan International has made history by becoming the first mainland Chinese broker in Hong Kong to offer comprehensive virtual asset trading services after receiving formal approval from the Securities and Futures Commission (SFC).
This milestone marks a pivotal moment for the industry, signaling that established financial institutions are now fully integrating digital assets into their service offerings—ushering in a new era of digital financial infrastructure, cross-border finance, and regulated crypto trading.
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A Regulatory Green Light for Institutional Crypto Adoption
Guotai Junan International has successfully upgraded its existing Type 1 license (Securities Dealing) to include authorization as a Virtual Asset Service Provider (VASP). This regulatory clearance allows the firm to offer clients direct access to trade major cryptocurrencies such as Bitcoin and other approved virtual assets on its platform. More importantly, it also permits the firm to provide investment advice related to digital assets—expanding its role beyond mere execution.
This development aligns with Hong Kong’s progressive regulatory framework. In February 2025, the SFC introduced its A-S-P-I-Re roadmap—an acronym standing for Access, Safeguard, Product, Infrastructure, and Relations—designed to guide the sustainable growth of the region’s virtual asset ecosystem. The strategy emphasizes secure market access, investor protection, diversified product offerings, robust technical infrastructure, and global connectivity.
Further reinforcing this vision, the Hong Kong Special Administrative Region government released the Hong Kong Digital Assets Development Policy Declaration 2.0 on June 26, clarifying the regulatory分工 (division of responsibilities). Under the new framework:
- The SFC acts as the primary regulator for digital asset trading platforms, overseeing licensing, registration, standards development, and compliance.
- The Hong Kong Monetary Authority (HKMA) supervises banks engaging in digital asset-related activities, ensuring financial stability and risk control.
As of now, 11 virtual asset trading platforms are authorized to operate in Hong Kong, while 41 financial institutions have been approved to upgrade their Type 1 licenses to include virtual asset services—a clear indicator of accelerating institutional adoption.
Industry Transformation: From Traditional Brokerage to Digital Financial Infrastructure
The entry of established brokers like Guotai Junan International into the digital asset space is more than just a service expansion—it represents a fundamental business model transformation.
According to Dongwu Securities analyst Sun Ting, this move demonstrates that top-tier Chinese brokers possess the operational capability and compliance rigor to manage virtual assets under strict regulatory oversight. It sets a precedent for other firms with Hong Kong subsidiaries and shifts competitive dynamics away from low-margin, commoditized brokerage services toward high-value digital financial infrastructure development.
This transition enables brokers to offer integrated solutions across:
- Cross-border digital asset trading
- Tokenized securities
- Stablecoin-based settlements
- Institutional-grade custody and advisory
Such capabilities position them as key players in the emerging global digital finance network, particularly for clients seeking exposure to compliant crypto markets in Asia.
Brokers Racing to Capture Market Share
Guotai Junan International is not alone in this pursuit. Several other mainland-affiliated brokers are actively advancing their virtual asset strategies:
- TF International (Tiantou International)
- Haifu Securities, a subsidiary of East Money Information
- Futu Securities (Hong Kong)
- Interactive Brokers (Hong Kong)
- China Futures Securities
These institutions are either in the process of upgrading their licenses or building out technical and compliance frameworks to support virtual asset trading. Their collective momentum suggests a broader trend: the institutionalization of crypto through regulated financial channels.
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Strategic Implications: New Revenue Streams and Global Reach
For securities firms, virtual asset trading opens up significant new revenue opportunities. Unlike traditional equity trading, which faces intense competition and shrinking commissions, crypto-related services offer higher-margin businesses such as:
- Trading fees on high-volatility assets
- Custody and staking services
- Structured crypto products
- Advisory for institutional and high-net-worth clients
According to a research report by Shenwan Hongyuan, virtual asset trading allows international arms of Chinese brokers to diversify income streams and reduce reliance on domestic markets. Meanwhile, West China Securities highlights the long-term potential: mainland brokers can leverage Hong Kong’s growing stablecoin ecosystem to participate in tokenized securities issuance, trading, and clearing—a development that could redefine capital markets over the next decade.
The “going global” strategy is becoming increasingly viable. By establishing compliant digital asset operations in Hong Kong—a recognized international financial hub—Chinese brokers gain a strategic gateway to serve overseas investors while adhering to global regulatory standards.
Core Keywords Driving Industry Growth
Key themes shaping this transformation include:
- Virtual asset trading
- Regulated crypto services
- Digital financial infrastructure
- Hong Kong SFC licensing
- Tokenized securities
- Cross-border finance
- VASP compliance
- Institutional crypto adoption
These keywords reflect both market demand and regulatory evolution, making them essential for understanding the trajectory of finance in the digital age.
Future Outlook: Building a Sustainable Digital Asset Ecosystem
Industry experts remain optimistic about the continued expansion of broker-led virtual asset services. Huachuang Securities’ non-bank financial team predicts that more brokers with international subsidiaries will complete their Type 1 license upgrades in the coming months. As major players enter the space, they will bring deeper liquidity, stronger client trust, and enhanced product innovation—accelerating the maturation of Hong Kong’s crypto market.
Moreover, the integration of digital assets into traditional brokerage platforms lowers barriers for mainstream investors. Instead of navigating standalone crypto exchanges, clients can now access Bitcoin and other virtual assets through familiar, regulated environments—boosting adoption while maintaining compliance.
Frequently Asked Questions (FAQ)
Q: What does it mean for a broker to have a VASP license?
A: A Virtual Asset Service Provider (VASP) license allows a financial institution to legally offer crypto trading and related advisory services under regulatory supervision. In Hong Kong, this requires upgrading an existing Type 1 license and meeting strict AML, cybersecurity, and investor protection standards.
Q: Can all Hong Kong brokers trade crypto now?
A: No. Only brokers that have received approval from the SFC to upgrade their licenses can offer virtual asset trading. As of now, 41 institutions have been approved, but not all have launched services yet.
Q: Is Hong Kong becoming a crypto hub?
A: Yes. With clear regulations, active government support via initiatives like the Digital Assets Policy Declaration 2.0, and growing participation from traditional finance players, Hong Kong is positioning itself as Asia’s leading center for regulated digital asset innovation.
Q: How do investors benefit from broker-based crypto trading?
A: They gain access to crypto within trusted, regulated platforms they already use for stocks and funds. This reduces counterparty risk, improves security, and enables seamless portfolio diversification across asset classes.
Q: Will more Chinese brokers enter the crypto space?
A: It’s highly likely. Brokers with strong Hong Kong operations are well-positioned to expand into virtual assets. As client demand grows and regulatory clarity increases, more firms are expected to follow Guotai Junan International’s lead.
Q: Are stablecoins part of this development?
A: Yes. Hong Kong is actively promoting regulated stablecoin issuance as part of its digital currency strategy. This creates opportunities for brokers to engage in tokenized finance, including settlement, issuance, and trading of digital securities.
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Conclusion: A New Chapter in Financial Innovation
The approval granted to Guotai Junan International is more than a corporate achievement—it’s a symbol of convergence between traditional finance and the digital economy. As brokers redefine their roles in this new era, they are not just adding another product line; they are building the foundations of tomorrow’s financial system.
With Hong Kong leading the charge in regulatory clarity and institutional readiness, the stage is set for sustained growth in virtual asset trading. For investors, regulators, and financial firms alike, the message is clear: digital assets are no longer optional—they are integral to the future of finance.