First Chinese Broker Enters Crypto Market with Full Virtual Asset Services – What’s Next?

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In a landmark development for Hong Kong’s financial sector, Guotai Junan International Holdings Limited has become the first mainland-affiliated securities firm to offer comprehensive virtual asset trading services in the region. This strategic move not only marks a turning point for traditional finance’s integration with digital assets but also signals a potential wave of transformation across the entire Chinese brokerage industry.

The announcement triggered an explosive market reaction: Guotai Junan International's stock surged nearly 200% at close, hitting a decade-high, while broader broker stocks in both Hong Kong and mainland China rallied. Investors are now asking: What does this mean for the future of digital finance in Asia? And which institution will follow next?

A New Era for Traditional Finance and Digital Assets

On June 24, Guotai Junan International officially received approval from the Securities and Futures Commission (SFC) of Hong Kong to upgrade its existing Type 1 license (dealing in securities). The enhanced license now permits the firm to:

👉 Discover how traditional brokers are reshaping crypto access for millions.

This regulatory green light allows clients to trade major cryptocurrencies like Bitcoin, Ethereum, and stablecoins such as Tether (USDT) directly through their existing brokerage accounts—no need for separate exchange registrations or complex wallet setups.

As a pioneer among Chinese financial institutions, Guotai Junan International has been strategically positioning itself in the digital asset space since 2024. That year, it launched structured products based on spot Bitcoin and Ethereum ETFs and began acting as an introducing agent for licensed virtual asset platforms. In early 2025, it gained SFC permission to distribute tokenized securities and initiated digital bond issuance—laying the groundwork for its latest breakthrough.

Now, with full-service virtual asset capabilities, the firm completes a robust ecosystem that bridges conventional capital markets with next-generation digital finance.

“We aim to deepen the integration of fintech and virtual assets, delivering secure, compliant, and professional services that support Hong Kong’s vision as a global virtual asset hub,” said a company spokesperson.

Why This Move Matters: Market Impact and Investor Access

The implications extend far beyond one company’s success. Guotai Junan International’s entry validates virtual assets as a legitimate component of institutional investing—and lowers barriers for retail participation.

Previously, retail investors faced significant hurdles: navigating unregulated exchanges, managing private keys, and dealing with compliance uncertainty. Now, they can access crypto within a regulated, familiar environment backed by a trusted financial name.

This shift is already influencing markets:

Such momentum reflects growing confidence that digital assets are no longer niche speculation—they’re becoming part of mainstream investment portfolios.

FAQ: Understanding the Shift

Q: Can all Chinese brokers now offer crypto trading?
A: Not yet. Only firms with upgraded SFC licenses—like Guotai Junan International—can provide these services. Others must apply and meet strict compliance requirements.

Q: Is my crypto safe if traded through a broker?
A: Yes. Licensed brokers must partner with regulated custodians and exchanges (e.g., HashKey), ensuring fund security, transparency, and regulatory oversight.

Q: Do I need to be a professional investor to participate?
A: For most new broker-led crypto services, including Guotai Junan International’s offering, retail investors can participate—subject to risk assessment and suitability checks.

How Hong Kong’s Virtual Asset Ecosystem Is Evolving

Hong Kong’s regulatory framework treats virtual assets under its existing licensing system. Key players include:

Currently, 11 virtual asset platforms are fully licensed by the SFC. Among them, HashKey Exchange is believed to be Guotai Junan International’s primary partner. According to HashKey’s sales director Zhu Zhenyu, several top-tier Chinese brokers have already completed system integration and are preparing to launch similar services.

“We’re seeing strong interest from major brokers who want to leverage our omnibus brokerage model to offer seamless crypto deposits and withdrawals,” Zhu noted.

Traditional brokers bring massive client bases and compliance expertise—potentially diverting traffic from standalone exchanges. Yet collaboration remains mutually beneficial: exchanges gain institutional liquidity; brokers gain technical infrastructure without building from scratch.

👉 See how integrated platforms are simplifying crypto investing for traditional users.

Who Will Be Next? The Race Among Chinese Brokers

Guotai Junan International may have taken the lead, but it won’t be alone for long.

Industry insiders confirm that other leading mainland-affiliated brokers are actively pursuing similar upgrades:

However, progress will vary. Larger institutions with international arms and established compliance systems are best positioned to move quickly. Smaller brokers face higher entry costs and greater regulatory scrutiny.

“We’re watching carefully,” said a mid-sized broker representative. “But given the sensitivity of crypto, we’re proceeding cautiously.”

Still, the trend is clear: over the next 1–2 years, more Chinese financial firms are expected to enter the space across multiple business lines—including brokerage, asset management, investment banking, and tokenized securities issuance.

FAQ: What Services Can Brokers Offer?

Q: Can brokers issue their own cryptocurrencies?
A: No. Brokers cannot issue tokens themselves but can distribute or advise on SFC-approved digital assets.

Q: Will brokers offer staking or yield products?
A: Potentially—but only within SFC guidelines. Any income-generating features must comply with investor protection rules.

Q: How do brokers make money from crypto?
A: Through trading commissions, advisory fees, structured product sales, and OTC derivatives—similar to traditional securities.

The Bigger Picture: Toward Institutionalized Crypto Markets

The arrival of traditional brokers like Guotai Junan International signifies a broader shift: virtual assets are being absorbed into regulated finance.

As Professor Tian Lihua, Dean of Nankai University’s Institute of Financial Development, observes:

“Broker participation reduces speculative risk. Investors gain access to professional advice, risk management tools, and diversified portfolios—all within a compliant framework. This accelerates the market’s evolution from retail-driven volatility to institutional-grade maturity.”

With safer access points, clearer regulations, and growing product diversity, Hong Kong is solidifying its role as Asia’s premier gateway for digital asset innovation.

👉 Learn how you can navigate this new era of regulated crypto investing today.

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