According to a report by the South China Morning Post, the brokerage arm of China Merchants Bank has successfully acquired a virtual asset license in Hong Kong, marking a significant milestone as the first mainland Chinese broker to achieve this feat. The license, issued by the Hong Kong Securities and Futures Commission, enables the bank's brokerage division to provide services such as crypto asset trading, custody, and advisory services.
However, it is essential to note that this license does not permit the company to engage in crypto-related activities in mainland China, as stated by a lawyer. This development reflects Hong Kong's efforts to establish itself as a hub for the crypto industry, having opened its doors to crypto companies after China's ban on crypto trading and mining in 2021.
The Hong Kong government has been actively engaging with the industry since 2022 and has recently granted licenses to several crypto exchanges, with over 40 firms preparing to apply for stablecoin licenses.