August 20, 2025
By Anjali Kochhar
CMB International Securities Limited, a subsidiary of China Merchants Bank, has launched a cryptocurrency exchange in Hong Kong after receiving regulatory approval. The Hong Kong Securities and Futures Commission (SFC) granted the firm a virtual asset service provider license in mid-July. This allows CMB International to offer trading in Bitcoin, Ethereum, and Tether (USDT) around the clock, but only to professional investors.
China Merchants Bank is among the largest banking institutions in China, managing assets exceeding 1.7 trillion US dollars as of March this year. Its ordinary class A shares are valued at a market capitalization of about 153 billion US dollars. The move by its subsidiary marks a significant entry of a traditional Chinese bank into the digital asset sector.
In its announcement, CMB International stated its ambition to integrate digital assets with traditional stock trading and fintech services. Future offerings may include tokenized assets and wealth management tools designed for its high-value clients.
The development comes against the backdrop of mainland China’s strict ban on cryptocurrency trading, which has been in place since 2017. By using Hong Kong’s unique “one country, two systems” framework, institutions like CMB are able to explore opportunities in digital finance under a more favorable regulatory regime.
CMB International’s crypto exchange stands out as the first bank-affiliated brokerage from mainland China to secure an SFC license for virtual asset services. This signals an important shift, as traditional financial giants begin to embrace blockchain technology within regulated environments.
To use the platform, clients must meet Hong Kong’s definition of professional investors, which generally includes institutions or individuals with a portfolio valued above HK$8 million (approximately 1 million US dollars). Additionally, the exchange enforces strict compliance with Know Your Customer and Anti-Money Laundering standards.
The platform is built with high security standards, including cold wallet storage, real-time risk monitoring, independent audits, and technical support from OKX Planet, which provides liquidity and the underlying trading engine.
Meanwhile, Hong Kong continues to strengthen its status as a regulated digital-asset hub. The SFC recently introduced updated frameworks for stablecoin issuers, custodians, and trading platforms. New rules require stricter custody arrangements and prohibit the use of smart contracts in cold wallet systems, while a public license registry has also been launched.
CMB International has not disclosed whether it will eventually extend its services to retail investors. However, it has indicated plans to expand its digital asset offerings and further integrate them with its traditional financial products.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over five years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
