July 17, 2025
By Anjali Kochhar
In a city racing to redefine its financial identity, a major player has stepped onto the digital battlefield. China Merchants Bank International (CMBI), the brokerage arm of one of China’s largest banks, has officially joined Hong Kong’s regulated crypto market a development that could reshape institutional involvement in virtual assets.
CMBI has secured a virtual asset licence from Hong Kong’s Securities and Futures Commission (SFC), authorising the firm to offer trading, custody, and advisory services related to digital assets. This marks the first time a brokerage linked to a major state-owned Chinese bank has received approval under Hong Kong’s new virtual asset regulatory regime.
While the approval positions CMBI as a pioneer among mainland-linked financial institutions, it also underscores the current regulatory divide. The services permitted under this licence are limited to Hong Kong and overseas clients, as China’s domestic ban on crypto trading remains firmly in place.
Industry experts are taking note. Joshua Chu, lawyer and co-chair of the Hong Kong Web3 Association, stated, “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.”
CMBI’s entry signals a growing appetite among Chinese financial institutions to experiment with blockchain and crypto solutions from within Hong Kong’s sandbox environment. Other players, including Guotai Junan International and TF International Securities, are currently seeking similar licences or upgrades, suggesting that this is just the beginning of a broader institutional wave.
This move also arrives ahead of Hong Kong’s new stablecoin licensing law, which will take effect on August 1. With this regulatory groundwork in place, Hong Kong is building an environment that combines investor protection with innovation, allowing traditional finance to explore digital transformation without leaving compliance behind.
Hong Kong’s bet on digital finance is turning into a blueprint for the future. With CMBI stepping into the virtual asset space, the city isn’t just welcoming innovation it’s inviting transformation. This isn’t a quiet entry; it’s a signal to global markets that traditional finance is ready to co-exist with Web3 under a regulatory roof. The message is clear: the age of crypto-backed institutions is no longer on the horizon it’s already taking shape.
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 four 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.
