China Merchants Bank (CMB), one of China’s largest financial institutions, has officially entered the digital asset space through its subsidiary CMB International Securities Limited. The firm has launched a licensed cryptocurrency exchange in Hong Kong, offering professional investors access to Bitcoin (BTC), Ethereum (ETH), and Tether’s USDt (USDT).
The move highlights Hong Kong’s growing role as a regional crypto hub, even as mainland China continues to enforce a strict ban on digital asset trading.
Licensed Crypto Trading Platform
According to CMB’s announcement on WeChat, the launch follows approval from the Hong Kong Securities and Futures Commission (SFC), which granted the company a Virtual Asset Service Provider (VASP) license in mid-July. This regulatory green light enables CMB International to provide 24/7 crypto trading services for eligible clients.
The exchange currently limits access to professional investors, reflecting Hong Kong’s cautious approach to balancing investor protection with market innovation.
CMB manages over $1.7 trillion in assets as of March 2025, making it one of China’s most influential banks. Its entry into the crypto space signals a major step in bridging traditional finance and digital assets, especially given China’s restrictive stance on cryptocurrencies within the mainland.
Notably, CMB is the first Chinese bank-affiliated broker in Hong Kong to secure crypto trading licenses. The bank also signaled plans to integrate traditional stock trading with digital assets, creating a more connected fintech ecosystem.
Mainland China vs. Hong Kong
While mainland China has banned crypto trading since 2017, Hong Kong operates under its “one country, two systems” policy, which allows for separate financial and regulatory frameworks.
- In mainland China, offering crypto services remains illegal, and authorities continue to crack down on trading and stablecoin promotions.
- In Hong Kong, regulators have taken a more structured path, finalizing stablecoin regulations earlier this month and introducing rules for custody, security, and licensing of digital asset providers.
This distinction positions Hong Kong as a gateway for institutional investors who want exposure to crypto while operating under clear regulatory guidelines.
Hong Kong’s Emerging Role as a Crypto Hub
Over the past year, Hong Kong has intensified its focus on crypto regulation to attract global firms. The Hong Kong Monetary Authority (HKMA) finalized its Stablecoin Ordinance on August 1, introducing a six-month transition period for issuers. The new law criminalizes the sale of unlicensed fiat-pegged stablecoins to retail investors.
Additionally, the SFC recently introduced new custody rules, banning the use of smart contracts in cold storage solutions. These stricter frameworks may increase short-term volatility but are seen as laying the groundwork for long-term institutional trust.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.