CMB International Securities, a subsidiary of one of China's largest banks, China Merchants Bank, has launched a cryptocurrency exchange in Hong Kong offering trading services for virtual assets.
Launch of CMB's Crypto Exchange in Hong Kong
CMB International Securities announced the launch of its cryptocurrency exchange in Hong Kong, providing virtual asset trading services in compliance with local regulations.
According to a WeChat announcement, trading services for Bitcoin, Ether, and Tether are now available to professional investors. This move was made possible after the Hong Kong Securities and Futures Commission approved the bank's application for a virtual asset service provider license.
Crypto Regulations in China
Despite the ability to trade cryptocurrencies in Hong Kong, such activities remain prohibited in mainland China. In 2017, the Chinese government banned cryptocurrency trading, emphasizing a strict approach to the sector.
CMB highlights that it is the first Chinese bank-affiliated broker to secure licenses for virtual asset trading services in Hong Kong.
Hong Kong as an Emerging Crypto Hub
Hong Kong continues to develop as a center for cryptocurrency trading, adopting new regulations for stablecoin issuance and enhancing oversight over crypto operations. The recent introduction of a regulatory framework aims to reduce fraud risks in the sector.
As of August 1st, new requirements for stablecoin issuers came into effect, and analysts noted that these rules may lead to market corrections.
The launch of CMB's exchange demonstrates the growing interest in cryptocurrencies in Hong Kong despite the restrictions in mainland China. This move may foster further development of trading services in virtual assets in the region.
