Hong Kong's Securities and Futures Commission (SFC) has approved license upgrades for 40 financial institutions, including Guotai Junan International, allowing these platforms to provide virtual asset trading services directly to investors. This landmark regulatory development creates new opportunities for cryptocurrency market participation through traditional brokerage channels.
Key Institutions Receiving Upgraded Licenses
The SFC-authorized institutions now include:
- Guotai Junan International (first Chinese-funded broker with full virtual asset services)
- Tianfeng International
- Haifu Securities (subsidiary of East Money)
- Futu Securities (Hong Kong)
- Interactive Brokers
- Zhongan Bank
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Service Scope Expansion
With upgraded Type 1 licenses, these institutions can now offer:
- Direct trading of cryptocurrencies (BTC, ETH) and stablecoins (USDT)
- Virtual asset investment advisory services
- Distribution of tokenized securities
- Digital bond issuance
Guotai Junan International has emerged as the market leader, having previously launched:
- Virtual asset ETF-based structured products (2024)
- Tokenized security distribution (2025)
- Digital bond services
Market Impact
The license upgrades have already shown significant effects:
- Guotai Junan International shares surged 200%
- HK Chinese Broker Index rose 11.75%
- Mainland brokerages like Tianfeng Securities hit price ceilings
Why This Matters for Investors
- Regulated access to virtual assets
- Integrated trading experience within traditional brokerage accounts
- Enhanced security through licensed platforms
Regulatory Landscape
Important notes from Hong Kong SFC:
- Only 11 licensed virtual asset trading platforms exist
- 6 spot ETFs and 3 futures ETFs currently approved
- Investors cautioned about market volatility risks
Future Developments
Several major brokers are pursuing license upgrades:
- Huatai International
- CMSC International
- Other Chinese-funded securities firms
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Frequently Asked Questions
Q: Can I withdraw virtual assets from these brokerages?
A: Currently only select platforms offer withdrawal functionality - check with each provider.
Q: How does this differ from crypto exchanges?
A: These are traditional financial institutions meeting stricter capital and compliance requirements.
Q: What investor protections exist?
A: SFC-licensed platforms must comply with anti-money laundering and client asset protection rules.
Q: Which virtual assets can be traded?
A: Each institution determines their offerings - most include major cryptos and stablecoins.
Q: Are mainland Chinese investors eligible?
A: Services currently only available to Hong Kong-based clients.