The license, which was effective from Monday, enables CMBI to offer a comprehensive suite of virtual asset services. These encompass trading activities, secure custody solutions, and expert advisory services. Furthermore, CMBI is now permitted to provide guidance related to risk management, regulatory compliance, and the development of effective investment strategies within the digital asset space.
According to Joshua Chu, a legal expert and co-chair of the Hong Kong Web3 Association, “Securing this license grants CMBI a regulated entry point into Hong Kong’s vibrant crypto market. However, CMBI must adhere to strict limitations preventing direct participation from mainland China. This reflects the careful balance Hong Kong is striking between fostering innovation and remaining compliant with existing legal frameworks.”
Hong Kong’s progressive stance on cryptocurrency is a response to the increasing acceptance of digital assets by established financial institutions and the overall expansion of the cryptocurrency industry. Mainland brokerages with a global presence are actively pursuing virtual asset licenses in Hong Kong as part of their strategies to better serve a broader international investor base.