25.06.2025 20:58

Guotai Junan International, a mainland China-backed brokerage firm, has achieved a significant milestone by securing a full-scope virtual asset trading and advisory license from the Hong Kong Securities and Futures Commission. This makes them the first such firm to receive this comprehensive approval.

The newly acquired license empowers Guotai Junan International to offer its clients direct access to a broad range of digital assets, encompassing cryptocurrencies like Bitcoin and Ethereum, and stablecoins such as Tether, all conducted through their platform. This regulatory win has been enthusiastically embraced by investors.

A dramatic market reaction followed the announcement, with Guotai Junan International's Hong Kong-listed shares experiencing a phenomenal surge of over 100% on Wednesday. This impressive gain translated to an approximate US$2.5 billion increase in market capitalization at its peak. The positive sentiment extended to other crypto-related stocks; for instance, OSL, a cryptocurrency exchange operator, saw its share price climb by around 18%, reaching a one-year high, and HashKey also recorded gains.

Hong Kong's proactive approach to virtual asset regulation is highlighted by this decision, establishing it as a key testing ground within the broader context of China's financial system, which maintains a ban on retail cryptocurrency trading on the mainland. Industry experts believe this development could significantly boost institutional involvement in the digital asset space and potentially encourage other Chinese financial institutions to pursue similar licenses.

This news was compiled from internet sources and is not directly attributed to any specific news organization.