Hong Kong's licensed cryptocurrency exchange OSL experienced an 18% stock price surge on June 25, reaching HK$14.60—a 12-month high—following China's Guotai Junan International obtaining a virtual asset trading license.
Market Impact of Virtual Asset Licensing
- Guotai Junan International became the first Chinese brokerage approved for virtual asset trading services in Hong Kong, with its stock rising over 200% post-announcement
- HSK, the native token of licensed exchange HashKey, jumped 50% on the news
- OSL's parent company, BC Technology Group, gained HK$1.8 billion in market capitalization
License Upgrade Enables New Services
"The upgraded Type 1 license allows Guotai Junan to provide advisory services under virtual asset trading regulations, including access to Bitcoin, Ethereum, and stablecoins via approved platforms."
— Hong Kong Securities and Futures Commission
Key developments:
- 40+ brokerages have upgraded licenses for virtual asset services in Hong Kong since 2023 regulations took effect
- New framework requires compliance with Anti-Money Laundering and Counter-Terrorist Financing Ordinance
- Institutions entering the space include Tiger Brokers (Singapore), Futu Securities (Hong Kong), and Qianjing Technology
Hong Kong's Stablecoin Regulation Framework
The Stablecoin Ordinance (effective August 1, 2025) establishes:
👉 Hong Kong's new licensing regime for fiat-referenced stablecoin issuers
Key provisions:
- Issuers must obtain HKMA approval for any fiat-pegged stablecoins
- "Same activity, same risk, same regulation" principle aligns with international standards
- Initial phase expected to approve limited licenses
"This represents a critical step in strengthening Hong Kong's digital asset regulatory framework while maintaining monetary stability."
— Eddie Yue, HKMA Chief Executive
Implementation Timeline
| Milestone | Date |
|---|---|
| Ordinance passed | May 2025 |
| License applications open | August 1, 2025 |
| First approvals expected | Q4 2025 |
FAQ: Hong Kong's Virtual Asset Regulations
Q: How many virtual asset licenses has Hong Kong issued?
A: Approximately 40 brokerages have upgraded licenses since 2023 regulations began.
Q: What cryptocurrencies can licensed firms trade?
A: Approved platforms may offer Bitcoin, Ethereum, stablecoins, and other compliant virtual assets.
Q: When will stablecoin regulations take effect?
A: The Stablecoin Ordinance becomes law on August 1, 2025, with license applications opening that date.
Q: Are there advantages to early adoption?
A: Yes—early participants like OSL and HashKey have seen significant market advantages and investor confidence boosts.
Strategic Positioning as Financial Hub
Hong Kong's regulatory advancements:
👉 Position the city as Asia's premier Web3 and digital asset hub
- Align with Financial Stability Board's global crypto asset framework
- Balance high licensing thresholds with market development needs
- Explore integration with future CBDC and bank-issued token systems
Market observers note these developments strengthen Hong Kong's competitiveness against Singapore and other regional financial centers while providing clearer institutional pathways into crypto markets.
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