CMB International Securities (CMBI), the brokerage arm of China Merchants Bank, said it received a virtual asset licence from Hong Kong’s Securities and Futures Commission, making it the first mainland broker to conduct cryptocurrency trading services and other activities in the city.
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The licence, issued on Monday, allowed CMBI to engage in a variety of virtual asset services, including trading, custody and advisory services. In addition, it can provide guidance on risk management, regulatory compliance and investment strategies.
The licence came after Beijing was seen to be supportive of Hong Kong’s efforts to become a cryptocurrency hub, but the move will not open a direct channel for investors on the mainland, where crypto trading remains banned, to trade in the city.
“By securing this licence, CMBI gains regulated access to Hong Kong’s dynamic crypto market, yet it must operate within strict boundaries that prevent direct mainland participation, reflecting the delicate balance of innovation and legal constraint,” said Joshua Chu, a lawyer and co-chair of the Hong Kong Web3 Association.
Earlier this month, the Hong Kong government said its new stablecoin ordinance, which requires issuers of assets backed by fiat currency to be licensed, will take effect on August 1.
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The city’s crypto moves came in response to a growing acceptance of digital assets by traditional financial institutions and the expansion of the surrounding industry. Mainland brokers with international operations have been ramping up efforts to acquire virtual asset licences in Hong Kong in an effort to serve more global investors.