CMB International Securities Ltd., a subsidiary of China Merchants Bank (CMB), one of China's top banks, has established a cryptocurrency exchange in Hong Kong.
According to a WeChat announcement from China Merchants Bank on Monday, the bank has begun offering virtual asset trading services. This initiative follows the approval of its virtual asset service provider license application by the Hong Kong Securities and Futures Commission in mid-July.
The Hong Kong crypto exchange of China Merchants Bank allows eligible investors to trade Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) 24/7. The documents provided by the bank clearly state that only professional investors are eligible to use the cryptocurrency trading services.
China Merchants Bank is one of the largest banks in China, managing over $1.7 trillion in assets as of the end of March. Its market capitalization for ordinary A-shares is $153.16 billion.
Related news: China cracks down on stablecoin promotion, research, and seminars.
Mainland China still prohibits cryptocurrency.
China Merchants Bank stated that it is the first Chinese-funded bank subsidiary to obtain a license related to virtual asset trading services in Hong Kong. The bank also plans to further integrate traditional stock trading with digital assets and fintech applications.
However, in Shenzhen, where China Merchants Bank is headquartered, such services are illegal. The Chinese government banned cryptocurrency trading as early as 2017.
Hong Kong: Emerging Crypto Center
Hong Kong authorities have clearly prioritized crypto regulation as an important task on their agenda. Earlier this month, the Hong Kong Monetary Authority (HKMA) announced a regulatory framework for stablecoin issuers.
New regulations have led to double-digit losses for stablecoin companies operating in Hong Kong as of August 1. Analysts say this is a healthy correction.
