Latest news with #JoshuaChu
South China Morning Post
6 days ago
- Business
- South China Morning Post
China Merchants Bank's brokerage arm receives virtual asset licence in Hong Kong
CMB International Securities (CMBI), the brokerage arm of China Merchants Bank, said it received a virtual asset licence from Hong Kong's Securities and Futures Commission , making it the first mainland broker to conduct cryptocurrency trading services and other activities in the city. The licence, issued on Monday, allowed CMBI to engage in a variety of virtual asset services, including trading, custody and advisory services. In addition, it can provide guidance on risk management, regulatory compliance and investment strategies. The licence came after Beijing was seen to be supportive of Hong Kong's efforts to become a cryptocurrency hub, but the move will not open a direct channel for investors on the mainland, where crypto trading remains banned, to trade in the city. 'By securing this licence, CMBI gains regulated access to Hong Kong's dynamic crypto market, yet it must operate within strict boundaries that prevent direct mainland participation, reflecting the delicate balance of innovation and legal constraint,' said Joshua Chu, a lawyer and co-chair of the Hong Kong Web3 Association. Earlier this month, the Hong Kong government said its new stablecoin ordinance, which requires issuers of assets backed by fiat currency to be licensed, will take effect on August 1. The city's crypto moves came in response to a growing acceptance of digital assets by traditional financial institutions and the expansion of the surrounding industry. Mainland brokers with international operations have been ramping up efforts to acquire virtual asset licences in Hong Kong in an effort to serve more global investors.
South China Morning Post
04-07-2025
- Business
- South China Morning Post
Singapore's crypto crackdown on unlicensed exchanges could drive liquidity to Hong Kong
Hong Kong could benefit from Singapore's recent move to oust unlicensed cryptocurrency companies, according to analysts, potentially leading to a significant injection of liquidity. Advertisement On May 30, the Monetary Authority of Singapore instructed cryptocurrency firms incorporated in the city and offering services abroad to acquire a licence or leave the country. Singapore's central bank subsequently set a June 30 deadline for crypto service providers in the city state to stop offering digital token services to overseas markets. This combined with Hong Kong's recently passed stablecoin ordinance, set to take effect on August 1, and Beijing's plan to liquidate confiscated cryptocurrencies in the city could all benefit the jurisdiction's efforts to build a crypto hub, according to Joshua Chu, a lawyer and co-chair of the Hong Kong Web3 Association. 'These moves are intimately connected, forming a strategic blueprint that could redefine Hong Kong's role in the global virtual asset ecosystem,' Chu said. 'This is likely to attract quality projects looking for a compliant, liquid, and globally connected base.' This illustration photograph taken on June 30, 2025 shows bitcoin representation coins against the backdrop of the Singapore national flag. Photo: AFP He added that Singapore's crackdown was part of a broader trend to regulate the industry and weed out bad actors. Thailand last month moved to ban five crypto exchanges, including major operators OKX and Bybit, while Dubai's Virtual Asset Regulatory Authority recently updated its rules to strengthen investor protections. Advertisement 'In the current climate, regulatory actions across Asia are best understood as a region-wide game of 'FATF musical chairs', and nobody wants to be left standing when the music stops,' Chu said, using the abbreviation for financial action task force.
