- China merchants bank subsidiary launches Hong Kong crypto Exchange for professional investors
- Exchange offers 24/7 trading for Bitcoin, Ether, and Tether’s USDt for professional investors
- Hong Kong continues to emerge as a prominent crypto hub, despite Mainland China’s crypto ban
CMB International Securities Limited, a subsidiary of China Merchants Bank (CMB), has officially launched a cryptocurrency exchange in Hong Kong. The move marks a significant step in the growing integration of traditional financial institutions into the digital asset sector. This launch comes after the Hong Kong Securities and Futures Commission (SFC) approved the bank’s application for a Virtual Asset Service Provider (VASP) license in mid-July.
The new platform enables professional investors to trade Bitcoin (BTC), Ether (ETH), and Tether (USDt) 24/7. However, the exchange is exclusively available to accredited investors, in line with local regulatory requirements.
CMB International Securities expands into cryptocurrency trading
While crypto trading remains banned in Mainland China, Hong Kong’s more liberal approach to cryptocurrency regulation continues to attract both local and international players. Under the “one country, two systems” framework, Hong Kong has evolved into a thriving crypto hub. In August, the Hong Kong Monetary Authority (HKMA) finalized a new regulatory framework for stablecoin issuers, signaling further institutional acceptance of digital assets in the region.
China Merchants Bank, with over $1.7 trillion in assets under management, becomes the first Chinese bank-affiliated broker to offer virtual asset trading services in Hong Kong. The bank has also revealed plans to integrate its traditional stock trading services with digital assets and fintech applications.
Despite these advances in Hong Kong, the situation in Mainland China remains starkly different. China’s stringent anti-crypto stance, dating back to 2017, prohibits such services. This has led to the creation of cross-border solutions like CMB’s Hong Kong-based exchange, offering a lifeline to Chinese crypto market participants.
A more secure future for stablecoins and crypto custody in Hong Kong
The HKMA’s new stablecoin regulatory framework, which came into force on August 1, 2025, has further solidified Hong Kong’s role as a global leader in digital asset regulation. While the introduction of the new laws resulted in a temporary sell-off in stablecoin markets, analysts see it as a healthy market correction, given the stricter-than-expected requirements for stablecoin issuers.
The Hong Kong Securities and Futures Commission (SFC) has also implemented robust security measures, including heightened custody standards and a ban on smart contracts for cold wallet implementations, ensuring a safer crypto trading environment for users.
