China Merchants Bank subsidiary officially launches Crypto Assets trading feature! Are Crypto Assets the "top priority" for Hong Kong regulation?

As China's strict ban on Crypto Assets enters its eighth year, its massive financial juggernaut is slowly navigating into this blue ocean of digital assets filled with opportunities and challenges in an extremely clever and Compliance manner. On August 18, 2025, one of China's largest banks by asset size, China Merchants Bank, officially launched virtual asset trading services through its wholly-owned subsidiary, China Merchants International Securities Company Limited, based in Hong Kong.

This move makes it the first Chinese-funded bank-affiliated brokerage to engage in such business in Hong Kong. This is not just an expansion of a brokerage's business, but is seen as a strong signal that clearly reveals Hong Kong's unique strategic position in the global digital financial landscape, as well as the inevitable trend of the integration between traditional finance and the encryption world. All of this inevitably leads people to ponder: has establishing a regulated and prosperous virtual asset center become the "top priority" for Hong Kong's regulatory authorities?

Unique "Hong Kong Portal"

According to the official announcement from China Merchants International, this highly anticipated virtual asset trading service was officially launched on August 18. Its core details fully reflect the rigor and prudence of traditional financial institutions in embracing innovation. Service content and channels: This service is seamlessly integrated into the existing mobile application (APP) of China Merchants Bank International, providing customers with year-round, 24/7 virtual asset trading capabilities. In the initial phase, the trading targets supported are the most liquid and highly recognized Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) in the market. Strict admission thresholds: This is not a retail service available to everyone. China Merchants Bank International clearly stipulates that this service is only open to "qualified investors." According to the regulatory definition in Hong Kong, this typically refers to individuals who have an investment portfolio of over HKD 8 million (approximately USD 1 million) or qualified institutional investors. Moreover, users must first successfully open a traditional securities cash account with China Merchants Bank International, and their identity must not be that of a resident of regions restricted from virtual asset sales—this clause is widely interpreted as excluding residents from mainland China. Compliance legal basis: The launch of this business is built on a solid regulatory license. As early as July 11 this year, China Merchants Bank International obtained approval from the Hong Kong Securities and Futures Commission (SFC) to upgrade its existing Type 1 (securities trading) and Type 7 (provision of automated trading services) licenses, formally incorporating virtual asset trading and advisory services.

From the conservative selection of trading coins to the high investor thresholds, and the complete regulatory licenses, China Merchants International takes every step cautiously, with the core goal of steadily entering the digital asset field while ensuring full compliance.

The strategic significance of this move by CMB International goes far beyond the business itself. It perfectly illustrates Hong Kong's unique role in the current global geopolitical and financial landscape – becoming the only compliant "gateway" for mainland capital and institutions to indirectly access the global Crypto Assets market.

Against the backdrop of strict bans on Crypto Assets trading and mining activities in mainland China, state-owned financial institutions closely linked to the government cannot directly conduct related business in the mainland. However, Hong Kong's "one country, two systems" principle provides a unique regulatory buffer for it. Hong Kong not only did not follow the mainland's ban but actively developed a separate regulatory framework aimed at embracing digital assets.

This creates an excellent opportunity for institutions like China Merchants International. They can leverage their licensed entity in Hong Kong to explore and layout digital asset businesses, all while fully complying with Hong Kong laws. This not only provides new services for clients seeking diversification in their asset portfolios but also allows the parent company (China Merchants Bank) to accumulate valuable industry experience without directly challenging the policy red lines in mainland China, preparing for potential policy changes in the future.

This is a carefully constructed bridge, one end represents China's vast, traditional, and heavily regulated financial system, while the other end represents a globalized, innovative yet risky world of Crypto Assets. And Hong Kong is the gatekeeper and operator of this bridge.

Hong Kong's regulatory combination punch

The entry of CMB International is not an isolated event, but rather the inevitable result of the systematic layout and promotion of digital asset development by the Hong Kong government and regulatory agencies in recent years. When these events are linked together, a clear strategic picture emerges.

Collective action in the banking sector: Before CMB International, other financial giants in Hong Kong had already begun to take action. One of Hong Kong's largest digital banks, "ZA Bank," has launched retail Crypto Asset trading; Standard Chartered's "Mox Bank" has also offered Crypto Asset investment products; and traditional banking giant HSBC has allowed clients to trade Bitcoin and Ethereum ETFs listed in Hong Kong since 2023.

Comprehensive regulatory framework: The Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) are implementing a set of regulatory "combination punches". In addition to establishing a clear licensing system for brokers and virtual asset trading platforms (VATP), they have recently introduced regulatory provisions for stablecoin issuers and frequently issued warnings against fraudulent activities in the market, severely cracking down on unlicensed platforms.

From licensing, regulation, and law enforcement to investor education, Hong Kong is building a comprehensive ecosystem aimed at attracting top global, compliant crypto enterprises and institutional investors. The core idea is very clear: exchange clear, strict, and predictable regulation for long-term market trust and healthy development.

Cautiously embrace and clarify direction

Back to the original question: Is Crypto Assets the top priority for Hong Kong regulators? From the groundbreaking actions of China Merchants International to the positive responses from the entire financial sector, and then to the intensive policy introductions from the regulatory authorities, the answer is already very clear.

Perhaps the term "primary" is still open to discussion, but turning Hong Kong into a globally leading, fully regulated virtual asset center has undoubtedly been elevated to the highest strategic level of the Hong Kong Special Administrative Region government.

The entry of China Merchants International is a key step in this grand strategy. It symbolizes the recognition and endorsement from the most mainstream financial forces in mainland China of Hong Kong's status as a digital asset hub. This is a "cautious embrace," taking place within the strict confines of "qualified investors," but the signals it sends are strong and clear.

In the future, we can foresee that more financial institutions with mainland backgrounds will follow the compliance path pioneered by China Everbright International and participate in the global wave of digital assets through Hong Kong, this unique gateway. Meanwhile, Hong Kong will continue to solidify its position as an irreplaceable international financial center in the intersection of tradition and the future.