China Merchants Bank (CMB), one of China’s biggest financial institutions has successfully set up its first crypto exchange in Hong Kong under its subsidiary company, CMB International Securities Limited.
The move comes as more and more Chinese firms are showing increased interest in the Hong Kong digital asset landscape, despite a complete ban of crypto back on home soil.
CMB's establishment of its first digital asset institution also marks a significant milestone for China, as the country continues to use Hong Kong as a regulatory testing ground for its new "experiments".
According to an official announcement made on CMB’s WeChat account, CMB International Securities now offers virtual asset trading services in Hong Kong following the bank’s successful application from the Hong Kong Securities and Futures Commission (SFC) in mid-July.
The exchange enables professional investors to trade Bitcoin (BTC), Ether (ETH), and Tether’s USDt (USDT) around the clock, leveraging state-of-the-art fintech integrations and robust compliance protocols.
However, the bank would only serve "qualified professional investors" at the moment, ensuring strict adherence to local regulatory standards.
With ordinary class A shares boasting a market cap of approximately $153.16 billion, CMB’s latest venture represents a major step forward in bridging traditional finance with the rapidly growing digital asset sector.
CMB International Securities has set itself apart as the first Chinese institution to have secured a direct licensing for virtual asset trading in Hong Kong.
Beyond cryptocurrency trading, CMB has also announced plans to link conventional stock market activity with digital assets and advanced fintech solutions, creating a seamless and compliant multi-asset ecosystem for institutional clients.
In the Chinese city of Shenzhen, where the bank headquarters is located, such services would be illegal. China’s comprehensive ban on cryptocurrency trading, implemented in 2017 means that similar services are illegal within the mainland, forcing firms and investors to seek innovative solutions and cross-border opportunities.
Hong Kong continues to assert its autonomy under the “one country, two systems” framework by advancing crypto-friendly policies and building out its regulatory infrastructure.
Earlier this month, the Hong Kong Monetary Authority (HKMA) finalized its much-anticipated regulatory framework for stablecoin issuers.
This new Stablecoin Ordinance, which began its six-month transition on August 1, criminalizes the retail promotion or offering of unlicensed fiat-referenced stablecoins, pushing service providers to comply or exit the market.
The introduction of these rules immediately impacted local stablecoin companies, many of which saw double-digit losses after enforcement commenced—underscoring analysts’ belief that stringent oversight would prompt healthy market corrections.
Authorities further bolstered transparency by deploying a public license registry, while the SFC issued urgent industry guidance on crypto custody, including enhanced security standards and a prohibition on smart contracts in cold wallet management practices.
This latter rule represents a direct challenge to current wallet protocols employed by industry leaders.
The launch of CMB’s crypto exchange in Hong Kong solidifies the city’s status as a regulatory pioneer and business-friendly environment for digital assets.
#Stablecoins are surging not just in the US but in Hong Kong, where South Asia leads on crypto regs. 🇭🇰
📺 Out tomorrow: @_prashantjha from CCN chats with Emma Shi of @HashKey_Global, a top compliant HK exchange, on stablecoin rules, #RWA growth & China’s exposure via HK. 📊 pic.twitter.com/tGcwoKFYQO
Despite mainland China’s enduring restrictions, Hong Kong’s willingness to grant licenses to major financial institutions and finalize stablecoin oversight highlights its intent to attract institutional capital and build resilient infrastructure for future growth.
As global regulatory landscapes continue to shift, Hong Kong stands out as a model for pragmatic engagement and innovation—laying the groundwork for a new era of secure, compliant, and integrated crypto trading for institutional players across Asia and beyond.
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