China-Backed Firms Get First Taste of Crypto in Hong Kong

A Landmark Approval for Mainland-Backed Broker

In a milestone move, Guotai Junan Securities (Hong Kong) has become the first Chinese mainland brokerage to receive a virtual asset trading license in Hong Kong. The firm’s Type 1 securities license was officially upgraded to include crypto services, according to a Wednesday announcement by the Securities and Futures Commission (SFC).

This upgrade grants the brokerage access to trade major digital assets like Bitcoin, Ethereum, and stablecoins such as USDT, under an omnibus account model in collaboration with SFC-licensed platforms.

Investor reaction was immediate - shares in Guotai Junan International surged by nearly 200%, closing at HK$3.7 (USD $0.47) following the news.

Regulatory Green Light Opens Doors for Others

The ease and speed of the SFC’s approval surprised many, including Hua Chuang Securities, which publicly stated that it expects more approvals to follow, especially for mainland firms with international branches.

This development could mark the start of a wave of similar license upgrades, as more Chinese brokerages look to establish crypto exposure via Hong Kong’s regulatory sandbox. Due to mainland restrictions, these firms are unable to offer crypto services directly in China, but Hong Kong’s autonomy offers an ideal workaround.

Futu Securities noted that stablecoins could play a major role in expanding brokerage services internationally by enabling asset securitization and cross-border settlements, reshaping how brokerages operate globally.

A Vote of Confidence in Hong Kong's Crypto-Friendly Ecosystem

Experts agree that Hong Kong’s regulatory environment is becoming a regional magnet for crypto. Terence Chong Tai-leung of CUHK said the expansion of virtual asset services—whether from mainland, local, or foreign capital—will significantly boost Hong Kong’s fintech sector.

There’s a growing belief that Hong Kong will continue to refine its crypto ecosystem, attracting both institutions and individual investors.

Institutional Investors Are Taking the Plunge

Evidence of this interest is clear in VMS Group’s recent investment strategy shift. The Hong Kong-based multi-family office, managing nearly $4 billion, is allocating up to $10 million to Re7 Capital, a decentralized finance (DeFi) hedge fund.

Managing Partner Elton Cheung confirmed that the move is part of an effort to diversify into more liquid investments, especially as private equity has grown illiquid in recent years. VMS, traditionally focused on long-term private investments, is now looking at DeFi and digital assets to rebalance its portfolio.

A New Era for Brokerages, DeFi, and Stablecoins

With regulations tightening in mainland China, Hong Kong is evolving into a safe harbor for innovation. Stablecoins, in particular, could unlock cross-border clearing, allowing firms to move from mere intermediaries to full-scale financial hubs.

This regulatory clarity also boosts valuations and gives brokerages the confidence to build infrastructure, partnerships, and new asset classes for their clients. As other mainland-linked brokerages watch Guotai Junan’s success, more will likely follow—turning Hong Kong into a gateway for China's crypto exposure.

With the groundwork in place, Hong Kong’s crypto-forward stance may prove pivotal for China’s re-entry into digital finance, albeit from just across the border.