The approval of virtual asset trading licenses continues to generate market reactions, with momentum shifting from Hong Kong stocks to A-shares. Market focus has transitioned from Guotai Junan International (Hong Kong) to mainland-based Tianfeng Securities. According to Wind data, Tianfeng Securities surged by 7.89% on June 27, briefly hitting the daily limit-up.
Key Developments in Virtual Asset Trading Licenses
Guotai Junan International recently announced its upgraded license from the Hong Kong Securities and Futures Commission (SFC), enabling it to:
– Offer virtual asset trading services (including cryptocurrencies like Bitcoin and Ethereum)
– Provide advisory services for virtual asset transactions
– Issue and distribute virtual asset-related products (e.g., OTC derivatives)
👉 Explore how virtual assets are transforming finance
Strategic Implications for Brokerages
- New Revenue Streams:
- Transaction fees from crypto/stablecoin trading
- Cross-border stablecoin settlement profits
-
Structured derivative product design
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First-Mover Advantage:
- Participation in Real-World Asset (RWA) tokenization
- Stablecoin issuance under Hong Kong’s 2025 regulatory framework
Industry analysts highlight this as a pivotal shift toward digital financial infrastructure.
Hong Kong’s Regulatory Landscape
The SFC’s 2025 “A-S-P-I-Re” roadmap simplifies market entry for licensed platforms. Key statistics:
– 41 institutions upgraded their Type 1 licenses for virtual asset trading
– 37 firms enhanced Type 4 licenses for virtual asset advisory services
– 40 asset managers expanded Type 9 licenses for virtual asset-heavy portfolios
Case Study: Guotai Junan’s Milestones
| Year | Achievement |
|---|---|
| 2024 | Launched virtual asset ETF-linked structured products |
| 2025 Q1 | Approved for tokenized securities advisory |
| 2025 Q2 | Secured full virtual asset trading license |
Market Response and Competitive Dynamics
- Futu Securities reported increased investor activity after introducing crypto/fiat trading pairs in 2024.
- Mid-sized brokers are evaluating license applications, prioritizing compliance.
👉 Discover the future of tokenized assets
FAQs
Q: How does this impact traditional securities firms?
A: It drives business model innovation, shifting focus from low-margin services to high-value digital asset solutions.
Q: What risks should investors consider?
A: Only trade on SFC-licensed platforms, as unregulated markets lack investor protections.
Q: Will more mainland brokers enter this space?
A: With over 30 Chinese brokerages operating in Hong Kong, analysts expect accelerated adoption.
Q: How does stablecoin regulation affect brokers?
A: The 2025 Stablecoin Ordinance creates opportunities in cross-border settlements and reserve asset management.
Future Outlook
- Cross-border expansion: Virtual assets enable brokers to tap global liquidity pools.
- Ecosystem growth: Synergies between tokenization, DeFi, and traditional finance will redefine non-bank financial services.
The race to build digital financial infrastructure is now a strategic imperative for forward-looking firms.