Hong Kong Grants First Virtual Asset License; Stocks Surge 120%

- Guotai Junan International secures Hong Kong's first virtual asset license for a Chinese mainland brokerage. - Market response includes a 120% stock surge for Guotai Junan and an 18% rise for OSL Exchange. On June 25, 2025, Hong Kong's Securities and Futures Commission (SFC) granted the city's first virtual asset license to Guotai Junan International, marking a major milestone in its efforts to become a global hub for digital assets. This approval makes Guotai Junan the first Chinese mainland brokerage in Hong Kong to achieve such regulatory clearance. Following this landmark announcement, shares of the Hong Kong-based OSL Exchange jumped 18%, closing at HK$14.6, a one-year high, while Guotai Junan International’s stock skyrocketed more than 120%. Additionally, on June 25, Reuters reported that the license for Guotai Junan Securities (Hong Kong) Limited, a subsidiary of Guotai Junan International, was upgraded. This upgrade now enables the subsidiary to provide trading services for virtual assets under a Type 1 license, including transactions involving major cryptocurrencies like Bitcoin, Ethereum, and stablecoins. Investors can access these transactions through omnibus accounts linked to SFC-approved trading platforms, an enhanced capability aimed at attracting both institutional and individual investors to Hong Kong’s burgeoning digital asset sector. This groundbreaking license approval underscores Hong Kong’s commitment to driving institutional adoption of virtual assets within a transparent and well-regulated environment. Moreover, investor enthusiasm extended beyond Guotai Junan and OSL Exchange; for instance, on June 25, HashKey’s native token, HSK, reportedly surged by over 50%, further reflecting the market's optimism. Looking ahead, Hong Kong’s Stablecoins Ordinance, which will take effect on August 1, 2025, aims to fortify its regulatory landscape. Under this ordinance, issuers of fiat-referenced stablecoins must obtain licenses from the Hong Kong Monetary Authority (HKMA), which is currently refining its implementation guidelines to uphold stringent compliance standards. These initiatives, combined with the SFC's efforts to streamline licensing for virtual asset trading platforms, highlight Hong Kong’s proactive approach as the city seeks to align its regulations with international frameworks established by bodies like the Financial Stability Board. As of 15:09 UTC on June 25, Bitcoin (BTC) was trading at $107,502.62, reflecting a 1.69% increase in its 24-hour volume. Meanwhile, Ethereum (ETH) traded at $2,418.23, representing a slight 0.97% decline. Stablecoins, including Tether (USDT) and USD Coin (USDC), remained pegged at $1, showing negligible fluctuations of -0.005% and 0.005%, respectively. Bitcoin’s market dominance, with its capitalization of $2.14 trillion, underscores its leading role in global crypto market dynamics.