Chinese brokerages have obtained their first full licenses, marking a milestone breakthrough for Hong Kong's virtual asset market. On June 24, 2025, Guotai Haitong Group's Guotai Junan International Holdings Limited received approval from the Hong Kong Securities and Futures Commission to upgrade its securities trading license to provide virtual asset trading services and related advice, becoming the first Chinese brokerage with comprehensive virtual asset service capabilities. This breakthrough signifies that Hong Kong's virtual asset market has formally entered a new stage of comprehensive participation by Chinese institutions, transitioning from a landscape dominated by foreign and local platforms.
Guotai Junan International's full licensing services cover the entire chain of virtual asset trading, trading advice provision, OTC derivatives issuance, and distribution, creating synergies with its virtual asset ETF brokerage, digital bond issuance, and tokenized securities distribution activities that have been laid out since 2024. As of June 2025, the number of licensed virtual asset trading platforms in Hong Kong has increased to 13 (including 11 'considered licensed' platforms), with Guotai Junan International being the only Chinese institution with full business line qualifications. The acquisition of this qualification not only recognizes its own compliance system and technical capabilities but also signifies a systemic breakthrough for Chinese brokerages at the forefront of global virtual asset regulation.
From the perspective of industry development coordinates, this approval coincides with the critical period of the Hong Kong Securities and Futures Commission's 'ASPIRe' roadmap implementation. This roadmap clarifies the goal of establishing Hong Kong as an international virtual asset center through six pillars including regulatory framework (A-Framework) and market standards (S-Standards). Guotai Junan International's breakthrough precisely confirms the shift of Hong Kong's regulatory system from 'watchful exploration' to 'proactive leadership,' setting a benchmark for the development of Chinese financial institutions in the compliant virtual asset field.
Industry Status: Hong Kong's Market Positioning and Growth Momentum in the Global Landscape.
(1) Global Virtual Asset Regulatory Landscape: Hong Kong's 'Balancing Act' Advantage.
Compared to the regulatory models in the US and Singapore, Hong Kong demonstrates a unique 'balancing act' in virtual asset regulation. The US employs a dual regulatory system of the SEC and CFTC, with strict scrutiny of the securities attributes of crypto assets, leading platforms like Coinbase to face legal uncertainties and even causing institutions like Bittrex to exit the US market due to regulatory pressure. Singapore implements a strict licensing system through the Payment Services Act, limiting retail leverage trading and focusing on risk control.
Hong Kong's uniqueness lies in its regulatory philosophy of 'open experimentation': on one hand, achieving full compliance through the VASP licensing system (mandatory licensing since June 1, 2023), and on the other hand, allowing retail investors to trade mainstream tokens while piloting HKD stablecoins through a regulatory sandbox. This balance has enabled Hong Kong to rapidly attract global crypto capital between 2024 and 2025—by February 2025, the total scale of 6 virtual asset spot ETFs in Hong Kong reached $483 million, with an average daily trading volume of $8.3 million. Although still smaller than the US market (which has 21 Bitcoin ETFs with a scale exceeding $50 billion), the growth potential is significant.
(2) Hong Kong Market Scale and Structure: From ETFs to Explosive Potential of the Full Business Chain.
The Hong Kong virtual asset market is undergoing a transformation from single products to a comprehensive ecosystem. In 2024, the average daily trading volume in the Hong Kong ETF market surged by 35% to HKD 18.9 billion, with virtual asset-related ETFs contributing significantly to the new volume. Entering 2025, with the acquisition of full business licenses by institutions like Guotai Junan International, the market structure has undergone a qualitative change:
1. Product Dimension: Expanding from a single ETF to a full spectrum of products including digital bonds, tokenized securities, and OTC derivatives. Guotai Junan International's digital bond issuance started in April 2025, and its tokenized securities distribution launched in May, has already achieved the integration of traditional financial instruments and blockchain technology.
2. Participant Dimension: The number of licensed institutions has increased from 2 in 2022 (OSL, HashKey) to 13 in 2025, with Chinese institutions emerging from non-existence to achieving full business breakthroughs. This diversified participant structure enhances the depth and liquidity of the market.
3. Capital Dimension: The net capital inflow of registered funds in Hong Kong in 2024 increased by 88% year-on-year to HKD 162.9 billion, with total managed assets reaching HKD 16.4 trillion, a year-on-year increase of 22%. As virtual assets are incorporated into mainstream asset allocation, it is expected that more institutional funds will enter the market through compliant channels in 2025.
HashKey Group predicts that by 2025, $30 trillion will enter the crypto market through forms such as security token offerings (STO) and central bank digital currency (CBDC), and Bitcoin prices may surpass $300,000. This provides a macro backdrop for the growth of the Hong Kong market. As a bridge connecting China and the global market, the scale of Hong Kong's virtual asset market is expected to achieve leapfrog development under the push of Chinese institutions.
Impact Analysis: Multidimensional Reconstruction from Corporate Strategy to Market Landscape.
(1) On Industry Landscape: The entry of Chinese firms breaks the original balance and accelerates the integration of traditional finance and virtual assets.
Previously, the Hong Kong virtual asset service market was mainly dominated by foreign institutions (such as Bullish) and local platforms (such as HashKey). Guotai Junan International's entry marks the formal stage of Chinese strength on the stage, bringing threefold changes:
1. Market Share Redistribution: The client base of Chinese brokerages in traditional finance (e.g., daily average trading volume of HKD 48.2 billion in the Shanghai-Hong Kong Stock Connect) and brand influence may prompt some investors to shift from foreign platforms to Chinese institutions. This shift will not only affect trading shares but may also change the direction of product innovation—such as virtual asset-linked products that are closer to the needs of mainland investors.
2. Service Model Innovation: Guotai Junan International's 'Trading + Product + Consulting' full-chain service model fills a market gap. In contrast, platforms like HashKey, while licensed, focus more on the trading end, and foreign institutions have been slower to layout in areas like tokenized securities issuance. The advantages of Chinese institutions in product design (e.g., digital bonds) and cross-border collaboration (connecting mainland and Hong Kong markets) may lead the industry to upgrade its service models.
3. Enhanced Compliance Standards: As a representative of Chinese brokerages, Guotai Junan International's compliance practices in anti-money laundering (AML) and know-your-customer (KYC) may become a new benchmark for the industry. The Hong Kong Monetary Authority has urged banks to provide services to licensed virtual asset companies, and the natural connection between Chinese institutions and the mainland financial system may accelerate the improvement of fiat currency channels, addressing the long-standing challenges of fund inflow and outflow in the industry.
(2) On Hong Kong's Financial Center Status: Strengthening the role of 'super connectors' to attract global crypto capital.
Against the backdrop of global regulatory divergence in virtual assets, Guotai Junan International's breakthroughs help Hong Kong consolidate its status as an international financial center.
1. Institutional Competitiveness: In contrast to the high-pressure regulation in the United States and the laissez-faire attitude in some regions, Hong Kong's model of 'moderate regulation + encouraging innovation' is more attractive. HashKey predicts that Bitcoin may become a strategic reserve asset backed by the US dollar by 2025, and Hong Kong, as a free port, is expected to become an important node for such asset allocation.
2. Bidirectional Capital Flow Hub: As Chinese institutions connect virtual asset services with the mainland market (e.g., through ETF mechanisms), Hong Kong may become a bidirectional channel for mainland funds to invest in virtual assets and international capital to participate in China's digital economy. In 2024, net capital inflow through the Hong Kong Stock Connect reached a ten-year high of HKD 807.9 billion, demonstrating the potential of this connecting mechanism.
3. Ecosystem Improvement: The entry of Chinese brokerages will drive supporting service institutions like law firms and accounting firms into the virtual asset field, accelerating the formation of a complete virtual asset service ecosystem in Hong Kong. This aligns closely with the goal of 'Ecosystem Cultivation (E-Ecosystem)' in the Hong Kong Securities and Futures Commission's 'ASPIRe' roadmap.
Competitive Landscape: Core Advantages of Chinese Brokerages Under Multidimensional Comparison.
(1) Comparison with Foreign Platforms: Compliance Localization and Client Resource Advantages.
Taking the licensed foreign platform Bullish as an example, Guotai Junan International's competitive advantage lies in:
1. Compliance Localization: As a Chinese brokerage registered in Hong Kong, it is more familiar with the local regulatory environment and policy direction, having a first-mover advantage in licensing applications and business compliance. In contrast, foreign platforms may face challenges in cross-border regulatory coordination, as exemplified by the case of Bittrex exiting the market due to regulatory pressure in the US.
2. Client Resource Synergy: As of the end of 2024, Guotai Junan International's total liquid assets amounted to HKD 123.55 billion, with total assets reaching HKD 130.17 billion, supporting its ability to provide one-stop financial services to clients. In contrast, foreign platforms typically focus on a single area of virtual assets, making it difficult to provide integrated services for traditional finance and digital assets.
3. Cross-Border Business Network: Relying on the layout of its parent company Guotai Haitong in the mainland, Guotai Junan International has unique advantages in connecting mainland enterprises for digital bond issuance and the cross-border circulation of tokenized assets, which is difficult for foreign platforms to compare.
(2) Comparison with Local Platforms: Full Business Chain and Capital Strength Advantage.
In comparison with the local licensed platform HashKey, Guotai Junan International's differentiated advantages lie in:
1. Full Business Chain Layout: Although HashKey has obtained an AMLO license, its business is mainly concentrated at the trading end, while Guotai Junan International covers the entire chain from issuance, distribution, trading, to consulting. The digital bond issuance service launched in 2025 is a typical breakthrough in product innovation for Chinese institutions.
2. Capital Strength Support: In 2024, Guotai Junan International's after-tax profit reached HKD 351 million, far exceeding most local startup platforms. Stronger capital strength allows it to bear high compliance costs and invest more resources in technology research and development and market promotion.
3. Traditional Financial Empowerment: The traditional advantages of Chinese brokerages in risk management, compliance systems, and institutional client services can effectively reduce operational risks in virtual asset businesses. For example, Guotai Junan International has integrated virtual asset trading into its existing client suitability management system, which is a capability that local emerging platforms need time to accumulate.
(3) Potential Challenges for Chinese Brokerages: Technological Iteration and Market Education Pressure.
Despite having many advantages, Chinese institutions like Guotai Junan International still face two major challenges:
1. Technical Infrastructure Development: The requirements for virtual asset trading on blockchain technology and distributed ledger technology (DLT) are higher than traditional securities businesses, necessitating Chinese brokerages to increase their investment in technology research and development to match the technical capabilities of native crypto platforms like HashKey.
2. Investor Education Needs: The complexity of virtual assets far exceeds that of traditional financial products, necessitating brokerages to invest more resources in investor education. In 2023, the Hong Kong Securities and Futures Commission issued a warning regarding misleading statements from virtual asset platforms, highlighting the urgency of market education.
3. International Brand Recognition: In the global virtual asset market, foreign platforms like Coinbase and Binance still dominate, while Chinese brokerages need time to enhance their international brand recognition to attract global institutional investors.
Future Trends: Outlook on the Triangular Interaction of Technology, Regulation, and Capital.
(1) Technology Application: Penetrating from trading services to asset digitalization across the entire chain.
Guotai Junan International has shown a trend of applying blockchain technology to traditional financial fields, and may deepen in three directions in the future:
1. Digital Bonds and Tokenized Securities: The digital bond issuance business starting in 2025 may expand to corporate bonds, government bonds, and other fields, utilizing blockchain to achieve full-process digitization of issuance, trading, and clearing. HashKey predicts that by 2025, $30 trillion will enter the crypto market through tokenization, providing immense space for Chinese brokerages.
2. Smart Contract Applications: In the trading of virtual asset over-the-counter derivatives, smart contracts can automatically execute trading conditions, reducing operational risks. Guotai Junan International has launched OTC derivative issuance in 2024 and may integrate smart contract technology into product design in the future.
3. Distributed Ledger Technology (DLT) Settlement: Drawing on the Hong Kong Monetary Authority's pilot of DLT in cross-border payments, Guotai Junan International may apply DLT in the settlement of virtual assets and fiat currencies to improve trading efficiency.
(2) Regulatory Evolution: From Trading Licenses to a Comprehensive Compliance Framework.
With the full business layout of institutions like Guotai Junan International, the Hong Kong regulatory system may improve on three dimensions:
1. OTC License System: The Hong Kong Financial Services and the Treasury Bureau has proposed establishing an OTC virtual asset trading service license system, requiring operators to apply for licenses from customs, which is expected to be implemented by 2025. This will provide a clearer compliance framework for institutions like Guotai Junan International in their OTC derivatives business.
2. Stablecoin Regulatory Guidelines: The Hong Kong Monetary Authority is piloting HKD stablecoins and may issue dedicated regulatory guidelines for stablecoins like Tether (USDT) in the future, which will affect Guotai Junan International's stablecoin trading business.
3. Investor Suitability Management: With the increase in retail participation in virtual asset trading, the Hong Kong Securities and Futures Commission may raise investor entry thresholds or require brokerages to implement stricter risk disclosures, necessitating Guotai Junan International to continuously optimize its client suitability management system.
(3) Capital Flow: Bidirectional Opportunities for Institutional Entry and Cross-Border Investment.
The capital flow in the virtual asset market in 2025 may present three major trends:
1. Inflow of Traditional Institutional Funds: HashKey predicts that Bitcoin will become a strategic reserve asset for institutions, and compliant platforms like Guotai Junan International may become the primary channel for mainland institutional investors to allocate virtual assets. In 2024, the asset management scale in Hong Kong reached HKD 16.4 trillion, with an increase in the proportion of virtual asset allocation expected to bring considerable growth.
2. Cross-Border Tokenized Asset Issuance: Leveraging the cross-border network of Chinese brokerages, Hong Kong may become the preferred location for mainland enterprises for tokenized securities issuance. Guotai Junan International has been authorized to distribute tokenized securities and may lead the issuance and underwriting of such products in the future.
3. Integration of Crypto Capital and Traditional Finance: Innovations such as virtual asset ETF structured products and digital bonds driven by institutions like Guotai Junan International will accelerate the integration of crypto capital and traditional finance, forming a mixed investment category of 'digital assets + traditional assets'.
Chinese brokerages lead Hong Kong's virtual asset market into a new era.
Guotai Junan International's approval for a full virtual asset license is not only a breakthrough for a financial institution's business but also a key turning point in the development of Hong Kong's virtual asset market. From an industry perspective, the entry of Chinese brokerages has broken the dominance of foreign and local platforms, and with its client base, capital strength, and full business chain capabilities, it is expected to accelerate the integration of virtual assets and traditional finance. From a regulatory perspective, this breakthrough validates the effectiveness of Hong Kong's 'ASPIRe' roadmap, providing an 'Eastern model' for balancing innovation and risk in global virtual asset regulation.
Looking ahead, the Hong Kong virtual asset market is expected to evolve rapidly in the triangular interaction of technological innovation, regulatory improvement, and capital inflow. The next steps for Chinese institutions like Guotai Junan International may include deepening digital bond issuance, launching more virtual asset-linked structured products, and exploring mechanisms for connectivity with the mainland market. These innovations will not only reshape their business landscape but will also promote Hong Kong to become a truly international virtual asset center, providing compliant and professional service platforms for global investors to capture opportunities in the digital economy era.
For investors, Guotai Junan International's entry means they can participate in the virtual asset market through a more familiar Chinese brokerage channel, but they must also remain vigilant to the inherent regulatory, market, and technological risks of the industry. For industry participants, the experience of Chinese institutions indicates that only by deeply integrating the compliance genes of traditional finance with the innovative spirit of virtual assets can they gain an edge in this rapidly changing market. The new era of Hong Kong's virtual asset market has officially begun under the leadership of Chinese brokerages.