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Guotai Junan International has become the first Chinese brokerage to secure a cryptocurrency trading license from Hong Kong’s Securities and Futures Commission (SFC), signaling a pivotal moment for traditional financial institutions entering the crypto market.
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This milestone aligns with Hong Kong’s launch of the LEAP framework, a comprehensive strategy designed to enhance digital asset regulation, including stablecoin licensing and tokenization initiatives.
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According to COINOTAG, Guotai Junan’s stock surged nearly 470% following the announcement, reflecting strong investor confidence in the firm’s digital asset ambitions amid Hong Kong’s expanding crypto ecosystem.
Guotai Junan’s crypto license approval under Hong Kong’s LEAP framework marks a major advancement in digital asset regulation, driving investor optimism and institutional adoption.
Guotai Junan’s Crypto License Marks Major Win for Hong Kong’s Digital Asset Strategy
On June 26, 2025, Guotai Junan International announced that the Hong Kong Securities and Futures Commission (SFC) had upgraded its Type 1 license to include cryptocurrency trading. Previously limited to traditional securities, this regulatory approval allows the brokerage to operate a compliant crypto trading platform, positioning it at the forefront of digital asset services in the region.
The market reacted positively, with Guotai Junan’s shares soaring nearly 470%, from HK$1.24 to an intraday high of HK$7.02 before settling at HK$3.54. This surge underscores investor enthusiasm for the firm’s strategic pivot towards digital assets, a sector gaining momentum in Hong Kong’s financial landscape.
Guotai Junan’s approval is a landmark achievement, making it one of the first traditional Chinese brokerages to gain regulatory clearance for crypto trading in Hong Kong. This development not only enhances the firm’s competitive edge but also signals a broader institutional shift towards embracing digital assets within the region.
Institutional Momentum and Market Implications
The license approval is a strategic endorsement of Hong Kong’s ambition to become a global hub for digital finance. Guotai Junan, controlled by a Shanghai state-owned enterprise and publicly listed in Hong Kong since 2010, lends significant credibility to the city’s crypto initiatives.
State-owned media, including the Securities Times, report that other major Chinese brokerages such as China Merchants Securities and Huatai International are actively pursuing similar license upgrades. This trend indicates growing institutional interest and potential expansion of regulated crypto services, fostering a more robust and transparent market environment.
Hong Kong Rolls Out LEAP Framework: Everything You Need to Know
Coinciding with Guotai Junan’s license upgrade, Hong Kong unveiled its LEAP framework—Legal clarity, Ecosystem expansion, Application focus, and People development—aimed at accelerating the integration of digital assets into mainstream finance.
Introduced by the Financial Services and the Treasury Bureau (FSTB), LEAP builds upon the 2022 digital asset roadmap and introduces several key initiatives:
- Launching a new licensing regime for stablecoin issuers starting August 1, enabling regulated issuance and circulation of fiat-backed stablecoins.
- Regular issuance of tokenized government bonds and promotion of tokenized ETFs, with clarified stamp duty policies to support secondary market trading.
- Expansion of tokenization efforts across diverse sectors, including precious metals and renewable energy assets such as solar panels.
- Plans to facilitate crypto derivatives trading for professional investors, complementing recent approvals for spot crypto ETFs, futures, and staking services.
Financial Secretary Paul Chan emphasized that LEAP aims to showcase the practical applications of tokenization and foster a thriving digital asset ecosystem that integrates with Hong Kong’s real economy and social fabric.
Distinct from mainland China’s stringent crypto ban, Hong Kong’s regulatory sandbox encourages innovation and institutional adoption, positioning the city as a leading Asian hub for crypto and Web3 development.
Future Outlook for Hong Kong’s Crypto Market
With Guotai Junan’s license approval and the LEAP framework’s rollout, Hong Kong is rapidly solidifying its status as a premier destination for digital asset innovation. The regulatory clarity and institutional participation are expected to attract further investment and technological advancements, enhancing market liquidity and investor confidence.
As more traditional financial institutions pursue crypto licenses and tokenization initiatives, Hong Kong’s digital asset ecosystem is poised for sustained growth, offering new opportunities for market participants and reinforcing the city’s competitive edge in the global financial landscape.
Conclusion
Guotai Junan’s successful acquisition of a crypto trading license under Hong Kong’s progressive LEAP framework represents a significant milestone in the region’s digital asset journey. This development not only validates Hong Kong’s regulatory approach but also signals increasing institutional acceptance of cryptocurrencies. As the city continues to expand its digital finance infrastructure, investors and market participants should closely monitor emerging opportunities within this evolving landscape.
