China Merchants Bank subsidiary launches crypto exchange in Hong Kong

CMB International Securities Limited, a subsidiary of the China Merchants Bank (CMB) — one of China’s top banks — launched a cryptocurrency exchange in Hong Kong.

According to a Monday CMB WeChat , the bank has started offering virtual asset trading services. The launch comes after the Hong Kong Securities and Futures Commission for a virtual asset service provider license in mid-July.

CMB’s Hong Kong-based crypto exchange allows for 24/7 trading of Bitcoin (), Ether () and Tether’s USDt () for eligible investors. provided by the bank clarified that only professional investors are eligible for crypto trading services.

China Merchants Bank is one of the country’s largest banks, managing over $1.7 trillion worth of assets as of the end of March, according to Macrotrends . The bank’s ordinary class A shares have a market capitalization of $153.16 billion.

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Mainland China’s ban on crypto persists

CMB said it is the first Chinese bank–affiliated broker in Hong Kong to secure licenses tied to virtual asset trading services. The bank also noted plans to integrate traditional stock trading with digital assets and fintech applications.

Still, in Shenzhen, China — where the bank’s headquarters are located — such a service would be illegal. The Chinese government , resulting in major sell-offs at the time.

Since then, Chinese authorities have continued to in mainland China, leading some .

Hong Kong operates under its own rules within China’s “one country, two systems” policy, and is increasingly emerging as a local crypto hub.

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Hong Kong: an emerging crypto hub

Hong Kong authorities appear to have made crypto regulation a high-priority part of their agenda. On the first day of this month, the Hong Kong Monetary Authority (HKMA) .

The introduction of the new rules led to companies operating in Hong Kong , just after they came into force. Analysts at the time described the sell-off as a healthy correction, as the requirements for stablecoin issuers proved to be more stringent than expected.

The new rules were rolled out in a starting from Aug. 1. The new Stablecoin Ordinance effectively  of unlicensed fiat-referenced stablecoins to retail investors. Local authorities also before the rules came into effect.

The Hong Kong Securities and Futures Commission has warned that the introduction of the new local stablecoin regulatory framework has . Last week, the SFC also issued immediate , introducing sweeping security requirements and a ban on smart contracts in cold wallet implementations — a rule that conflicts with current practices at several leading firms.

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