Chinese brokerages are entering the crypto space?! Guotai Junan has obtained a crypto license 🔥 stock price is soaring!
Let's look at the latest news: On June 24, Guotai Junan International announced that it has officially received approval from the Hong Kong Securities and Futures Commission to upgrade its existing securities trading license to provide virtual asset trading services and related advice. After the upgrade, clients can directly trade cryptocurrencies like Bitcoin, Ethereum, and stablecoins like USDT on its platform.
Since the beginning of this year, perhaps feeling a sense of urgency, Guotai Junan has been accelerating its pace in obtaining qualifications.
In January 2024, virtual asset ETF and futures brokerage business
In April 2024, issuance and distribution of virtual asset over-the-counter derivatives business
In December 2024, introduction of agent services for virtual asset trading platforms
In April 2025, digital bond issuance business
In May 2025, distribution of tokenized securities or providing advice on tokenized securities
In June 2025, virtual asset trading services and providing advice based on this
Considering that Hong Kong has already issued licenses to 11 virtual asset trading platforms, Guotai Junan is not a pioneer in this field. However, as the first Chinese brokerage to provide comprehensive virtual asset trading services, it reflects a change in the attitude of traditional brokerages to some extent.
As a traditional financial institution facing higher reputational and regulatory thresholds, Guotai Junan's entry indicates a high level of trust in the Hong Kong framework. The actions taken by a mature traditional financial institution may encourage other local and international traditional financial participants to accelerate their virtual asset strategies in Hong Kong.
From the following progress chart on cryptocurrency compliance in Hong Kong, it can be seen that Hong Kong has been steadily promoting the compliance regulations for the cryptocurrency market. The fast-track license approval system passed at the beginning of 2025 accelerated the approval process, with external evaluations conducted by qualified companies, followed by reviews by the Hong Kong Securities and Futures Commission, and licenses can be issued once all requirements are met.
Let me share a little personal thought: In fact, Hong Kong serves as a transit point for funds, and once the money reaches Hong Kong, it can be freely exchanged and transferred anywhere in the world. I wonder if those in power have realized that instead of letting money flow away for nothing, it would be better to provide an opportunity for it to stay in Hong Kong.
Compared to Singapore's previous expulsion of companies, although Hong Kong raises some concerns about attracting funds due to some unspoken reasons, it is precisely because of this awareness that the Hong Kong government is making every effort to promote the development of the cryptocurrency market. In the latest ranking of financial centers, Hong Kong has once again surpassed Singapore.
The outflow of domestic funds through Hong Kong has surged, and markets like cryptocurrency act like a reservoir, diverting the water away. Compared to a single blocked outlet, this strategy is undoubtedly much smarter. Although the true effect remains to be tested over time, it is commendable as an attempt.
Recently, on June 22, the 'cross-border payment link' between the mainland and Hong Kong has also opened, allowing real-time transfers by entering a mobile phone number. Currently, six banks are participating:
🇨🇳 Mainland: Agricultural Bank of China, Bank of China, Bank of Communications, China Construction Bank, China Merchants Bank, and Industrial and Commercial Bank of China;
🇭🇰 Hong Kong: Bank of China Hong Kong, HSBC, Hang Seng Bank, Bank of East Asia, China Jianyin Investment, and Industrial Bank of Asia.
Therefore, whether between the mainland and Hong Kong, or between traditional finance in Hong Kong and crypto finance, the channels are increasingly numerous and the doors are wide open. As I type this line, Guotai Junan's stock has already soared over 140%! It seems that the market is quite receptive to Guotai Junan's recent 'eye-opening view on crypto'.
On another note, after a strong partnership between Guotai Junan and Haitong Securities, the mainland parent company has firmly held the top position among mainland brokerages. Now, this financial giant has turned its attention to the cryptocurrency market, extending an olive branch. Who says traditional finance can't spark love with the crypto world? Look, the president of Guotai Junan has personally demonstrated this!
