Overview of the Milestone Achievement
On June 24, 2025, Guotai Junan International (GTJAI) made history by becoming the first Chinese-backed securities firm in Hong Kong to receive approval from the Securities and Futures Commission (SFC) for upgrading its existing license to include:
- Virtual asset trading services
- Investment advisory services for virtual assets
This strategic upgrade positions GTJAI at the forefront of Hong Kong’s rapidly evolving digital asset ecosystem, with its stock price surging 198.39% the following day.
Key Developments Leading to the Approval
Early Moves in Virtual Assets (2024–2025)
- 2024: Launched Hong Kong’s first structured products linked to virtual asset spot ETFs and secured SFC authorization as a virtual asset trading platform referral agent.
- 2025: Expanded services to include tokenized securities distribution and initiated digital bond issuance, paving the way for the recent SFC approval.
Hong Kong’s Regulatory Framework
According to HashKey Exchange Sales Director Zhu Zhenyu, Hong Kong’s virtual asset licensing system is categorized under:
- Type 1 (Dealing in Securities)
- Type 4 (Advising on Securities)
- Type 7 (Automated Trading Services)
- Type 9 (Asset Management)
- AMLO (Anti-Money Laundering Ordinance) licenses
GTJAI’s upgraded Type 1 license now enables it to serve retail investors through partnerships with SFC-licensed exchanges.
Strategic Implications for Brokers
1. Market Expansion Opportunities
- Traditional brokers like Futu Securities and Tiger Brokers have already entered the space via subsidiary licensing.
- Foreign firms (e.g., Interactive Brokers) and local players are accelerating virtual asset service rollouts.
2. Operational Requirements
- Technology Integration: Separate custody systems for traditional and virtual assets (per regulatory mandates).
- Partnership Models: Brokers without Type 7 licenses must rely on licensed exchanges for trade execution.
3. Future Ecosystem Growth
- Product Diversification: Structured products, tokenized securities, and derivatives.
- Advisory Services: Portfolio strategies bridging traditional and digital assets.
👉 Explore how leading platforms are adapting to these regulatory changes
Industry Outlook and Revenue Streams
Brokerage Services
- Facilitate crypto-fiat gateways and custody solutions.
- Example: Futu Securities integrates virtual asset trading into its existing stock-trading app.
Investment Banking
- IPO Underwriting: Serve blockchain firms going public.
- M&A Advisory: Support consolidation in the virtual asset sector.
Asset Management
- Launch virtual asset-focused funds for institutional clients.
FAQ Section
Q1: What does GTJAI’s license upgrade mean for investors?
A1: Retail clients can now trade virtual assets (e.g., Bitcoin, Ethereum) through GTJAI’s platform, backed by SFC oversight.
Q2: Will more Chinese brokers follow GTJAI’s lead?
A2: Analysts expect international subsidiaries of major Chinese brokers to upgrade licenses within 12–18 months.
Q3: How do brokers ensure compliance with virtual asset regulations?
A3: By partnering with SFC-licensed exchanges and implementing AML/KYC protocols for all transactions.
Conclusion: The Road Ahead
Hong Kong’s push to become a global virtual asset hub is creating unprecedented opportunities for brokers. GTJAI’s first-mover advantage underscores the importance of:
- Regulatory preparedness
- Technological agility
- Client-centric product innovation
👉 Discover how brokers are leveraging these trends for growth
As the market matures, collaboration between traditional finance and digital asset ecosystems will redefine investment paradigms—making this a pivotal moment for stakeholders across the board.