The race among brokerage firms to secure virtual asset trading licenses in Hong Kong is heating up, with growing market enthusiasm reflected in both regulatory approvals and investor sentiment. Recently, TF Securities (601162) saw its shares surge to a daily trading limit, driven by renewed interest in its subsidiary’s existing virtual asset capabilities. This momentum mirrors broader industry shifts as more financial institutions position themselves at the forefront of digital asset integration.
TF Securities’ Market Surge Sparks Investor Interest
On June 27, TF Securities opened sharply higher and quickly reached the 10.02% daily gain limit, closing the midday session at CNY 5.16 per share. The rally was fueled by market speculation that the firm’s offshore arm, TF International Securities Group Limited ("TF International"), had upgraded its securities license to include virtual asset trading services.
While the news sparked excitement, it's important to note that TF International has already held approval for virtual asset services since last year. According to TF Securities’ 2024 annual report:
"A subsidiary of TF International — TF International Securities & Futures Co., Ltd. — has received approval from the Hong Kong Securities and Futures Commission (SFC) to provide virtual asset trading services to clients through a consolidated account structure."
This clarification highlights a key trend: while public awareness is only now catching up, several major brokers have quietly advanced their digital asset strategies under Hong Kong’s evolving regulatory framework.
Regulatory Landscape: Understanding Hong Kong’s Virtual Asset Licensing Framework
The Hong Kong SFC regulates virtual asset activities through a tiered licensing system. Key categories include:
- Operating a virtual asset trading platform (Type 1 license enhancement)
- Managing portfolios with over 10% exposure to virtual assets (Type 9 license upgrade)
- Providing virtual asset trading via consolidated accounts
- Giving advice on virtual assets
- Acting as an introducing agent for VASP platforms
As of June 26, 41 institutions have been approved to offer virtual asset trading through consolidated accounts — a model allowing investors to access both traditional and digital assets within one integrated brokerage account.
Notably, Guotai Junan International announced on June 25 that it successfully upgraded its Type 1 license to cover both virtual asset trading and advisory services, making it the first mainland-backed broker in Hong Kong to offer comprehensive virtual asset solutions, including product issuance and OTC derivatives distribution.
In contrast, TF International currently holds authorization only for consolidated account-based trading, without formal advisory rights. This distinction underscores varying levels of market readiness and strategic focus across firms.
Competitive Landscape: Who’s Leading the Charge?
Beyond TF Securities and Guotai Junan International, other major players with approved access include:
- Futu Securities (Hong Kong)
- Yinhua Securities (via Harfu Securities, a subsidiary of East Money)
- Interactive Brokers
- China Midterm Securities
This growing list reflects increasing institutional confidence in regulated digital asset markets. With over 30 Chinese brokerages operating in Hong Kong and 13 dual-listed (A+H), the potential for further expansion is substantial.
According to research from Shenwan Hongyuan released on June 25:
As of June 24, there are 11 licensed virtual asset trading platforms in Hong Kong, 40 brokerages offering virtual asset trading via consolidated accounts (via Type 1 license upgrades), and 40 asset managers approved for crypto-heavy portfolios (Type 9 upgrades).
This data suggests a maturing ecosystem where traditional finance and digital assets are increasingly converging.
Industry Outlook: What’s Driving Brokerage Adoption?
Xu Kang, Head of Financial Industry Research at Huachuang Securities and Chief Analyst, notes that Guotai Junan International’s early progress exemplifies what’s possible.
“They secured brokerage qualifications for spot Bitcoin and Ethereum ETFs back in April 2024 — ahead of many peers. Their ability to distribute and underwrite these products gives them a first-mover advantage.”
He expects more brokerages with international arms to pursue similar Type 1 license enhancements, especially those with strong client bases. These upgrades don’t require entirely new licenses but rather expansions of existing permissions — making them operationally efficient and cost-effective.
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Current Challenges: From Approval to Adoption
Despite regulatory progress, actual transaction volumes remain minimal.
“Since obtaining approval, our virtual asset trading volume has been negligible,” shared a compliance officer from a licensed brokerage.
Customer eligibility also remains restrictive. As one insider revealed:
“Currently, only clients with Hong Kong identities can trade. Mainland China-based existing customers are not permitted — even if they hold accounts.”
These limitations highlight the gap between regulatory readiness and real-world usage, suggesting that mass adoption may still be years away.
Frequently Asked Questions (FAQ)
Q: What does ‘virtual asset trading via consolidated account’ mean?
A: It allows investors to buy and sell cryptocurrencies like Bitcoin and Ethereum directly through their existing brokerage accounts, alongside stocks and funds — all managed under one platform.
Q: Can mainland Chinese investors use these services?
A: Not currently. Access is limited to Hong Kong identity holders. Mainland residents, even those with overseas brokerage accounts, cannot trade virtual assets under current rules.
Q: Is this the same as owning a cryptocurrency exchange license?
A: No. Brokers offering virtual asset services via consolidated accounts act as intermediaries but do not operate full exchanges. That requires a separate Type 1 VASP license.
Q: Which cryptocurrencies are available for trading?
A: Typically major assets like Bitcoin (BTC), Ethereum (ETH), and stablecoins such as Tether (USDT). Product availability varies by broker.
Q: Are there risks involved in broker-led crypto trading?
A: Yes. While regulated platforms offer enhanced security and custody standards, crypto markets remain volatile. Investors should assess risk tolerance and understand custody arrangements.
Q: Will more brokers enter this space soon?
A: Highly likely. With low incremental costs for license upgrades and rising client demand, analysts expect broader participation — particularly from large brokers with established Hong Kong operations.
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Final Thoughts: A New Chapter for Traditional Finance
The recent surge in brokerage interest signals a pivotal shift: virtual assets are no longer fringe offerings but core components of modern wealth management. While adoption lags behind regulatory progress, the infrastructure is being built — quietly, deliberately, and with long-term vision.
For investors, this means greater convenience, improved security, and seamless integration of digital assets into diversified portfolios. For the financial industry, it represents a transformational opportunity to redefine value in the age of blockchain and decentralized finance.
As licensing momentum continues through 2025 and beyond, the line between traditional finance and digital assets will blur further — paving the way for a truly unified financial ecosystem.
Core Keywords: virtual asset license, brokerage crypto trading, Hong Kong SFC, consolidated account crypto, TF Securities, Guotai Junan International, digital asset regulation, crypto ETF brokerage