Chinese bank subsidiary, CMB International, secures pioneering Hong Kong license for cryptocurrency operations
China Merchants Bank Secures Virtual Asset Trading License in Hong Kong
In a significant move, China Merchants Bank International Securities Co., Ltd. (CMB International) has become the first Chinese bank-affiliated securities firm to secure a virtual asset trading services license from the Hong Kong Securities and Futures Commission (SFC). This development marks a growing acceptance of virtual assets within traditional financial institutions.
Effective July 14, 2025, CMB International can now offer virtual asset trading and related services, including custody and advisory, to qualified investors in Hong Kong. This move aligns with Hong Kong's proactive strategy to establish itself as a leading global hub for virtual assets.
CMB International's commitment to contributing to Hong Kong's creation of a safe and compliant virtual asset ecosystem is evident. The company plans to facilitate qualified investors in investing in digital assets alongside their traditional stock holdings and even explore the inclusion of cryptocurrencies in diversified portfolios.
Hong Kong continues to be used as a "digital asset bridge" for Chinese entities looking to engage with the crypto market under a regulated framework. With the impending stablecoin ordinance set to take effect on August 1, 2025, this trend is expected to continue.
Interestingly, direct crypto engagement remains prohibited on mainland China. However, the state-owned stake of 43.48% in China Merchants Bank underscores the strategic importance of this venture within the broader Chinese financial landscape.
The Hong Kong SFC is actively pursuing initiatives to create a robust and clear licensing regime for virtual asset service providers. This regulatory clarity is attracting more institutional players to the virtual asset market, signifying a shift towards a more regulated and mainstream crypto economy.
This development is a testament to the evolving landscape of virtual assets and the increasing role they are playing in the global financial market. As more institutions follow suit, we can expect to see a continued growth and maturity of the virtual asset industry.
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