Hong Kong’s regulated cryptocurrency landscape took a significant leap forward on June 25, as OSL Group’s stock soared 18% to HK$14.60 — marking a one-year high. The surge followed the Hong Kong Securities and Futures Commission (SFC) granting upgraded licensing rights to Guotai Junan International, a mainland Chinese securities firm, allowing it to offer virtual asset trading services. This regulatory milestone has triggered a wave of optimism across the region’s digital asset ecosystem, boosting investor confidence and sending ripples through the market.
The approval positions Guotai Junan International as the first Chinese brokerage in the region authorized to provide virtual asset trading services under Hong Kong’s evolving regulatory framework. Its stock jumped over 200% post-announcement, underscoring strong market sentiment. Meanwhile, HashKey Group’s native token, HSK, surged more than 50%, highlighting growing institutional interest in compliant crypto platforms.
👉 Discover how regulated crypto platforms are reshaping Asia’s financial future
Guotai Junan’s Expanded License: A Game Changer for Institutional Crypto Access
On Wednesday, Guotai Junan Securities — part of the Guotai Haitong group — received an upgraded Type 1 license from the SFC. This enhancement allows the firm to provide advisory services and facilitate access to Bitcoin, Ethereum, stablecoins, and other virtual assets through approved trading platforms.
This development is not just a win for Guotai Junan but signals broader integration of digital assets into traditional finance. Analysts suggest that such approvals pave the way for seamless crypto access via established financial channels. For instance, speculation has grown around Ant Group’s potential use of its subsidiary Yao Cai Securities — recently acquired — to integrate BTC and ETH trading directly into Alipay, leveraging Hong Kong’s licensing framework.
“The approval of Guotai Junan’s license upgrade is a strong signal. It opens the door for major financial players to enter the space. The most exciting possibility? Crypto trading within Alipay via Yao Cai’s license.”
— Crypto analyst @xiaomucrypto, June 25, 2025
The ripple effect was immediate. OSL, a fully licensed digital asset exchange under BC Technology Group, saw its share price climb sharply. As one of the earliest SFC-authorized platforms, OSL stands to benefit from increased institutional partnerships and enhanced credibility in a maturing market.
Hong Kong has been steadily building its regulatory infrastructure since launching its formal virtual asset licensing regime in June 2023. The framework mandates that all crypto service providers register with the SFC under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), ensuring compliance with global standards.
To date, approximately 40 brokerages have upgraded their licenses to offer virtual asset trading, including subsidiaries of Tiger Brokers (Singapore-based), Futu Securities (Hong Kong-based), and Qianjing Technology. This growing institutional participation reflects Hong Kong’s strategic push to become a hub for Web3 innovation and responsible digital finance.
Hong Kong Sets High Bar for Stablecoin Issuers
In May 2025, the Hong Kong Monetary Authority (HKMA) passed the Stablecoin Ordinance, establishing a formal licensing regime for fiat-referenced stablecoin issuers. Set to take effect on August 1, 2025, the law requires any entity issuing stablecoins pegged to fiat currencies — including the Hong Kong dollar or USD — to obtain prior approval from the HKMA, regardless of their jurisdiction.
“The Stablecoin Ordinance marks a critical step in strengthening Hong Kong’s regulatory framework for digital assets, safeguarding monetary stability, and reinforcing our position as a leading international financial center.”
— Eddie Yue, Chief Executive of the HKMA
The ordinance adheres to the principle of “same activity, same risk, same regulation,” aligning closely with international standards set by the Financial Stability Board (FSB), particularly its 2023 Global Regulatory Framework for Crypto-Asset Activities. Hong Kong is actively involved in G20 and FSB initiatives, ensuring its rules are both globally compatible and locally enforceable.
Key safeguards under the ordinance include:
- Strict capital and reserve requirements
- Regular audits and transparency obligations
- Investor protection mechanisms
- Anti-money laundering (AML) and counter-terrorism financing (CTF) compliance
The HKMA emphasizes that while participation in its earlier stablecoin sandbox — launched in early 2024 — is not mandatory for licensing, it does not guarantee approval. The authority will maintain a cautious approach, likely issuing only a limited number of licenses in the initial phase.
👉 Explore how compliant stablecoins are driving institutional adoption
Strategic Vision: Aligning Crypto with Hong Kong’s Financial Future
Beyond regulation, the HKMA is focused on long-term integration. Questions remain about how stablecoins will interact with central bank digital currencies (CBDCs) like the digital Hong Kong dollar and tokenized bank deposits. The authority aims to foster responsible innovation while ensuring financial stability.
By setting high entry barriers, Hong Kong seeks to attract only well-capitalized, reputable issuers — minimizing systemic risk while encouraging sustainable growth. This balanced approach supports investor trust and positions Hong Kong as a model for other financial centers navigating the digital asset transition.
The coordinated efforts between the SFC and HKMA reflect a unified vision: to create a secure, transparent, and innovative ecosystem where traditional finance and Web3 can coexist.
Frequently Asked Questions (FAQ)
Q: What caused OSL’s stock to rise 18%?
A: OSL’s share price surged following Guotai Junan International’s approval to offer virtual asset trading services. This boosted market confidence in regulated crypto platforms operating in Hong Kong.
Q: Is the Stablecoin Ordinance already in effect?
A: No. The Stablecoin Ordinance will officially take effect on August 1, 2025. The HKMA will begin accepting license applications after this date.
Q: Can foreign companies issue stablecoins in Hong Kong?
A: Yes, but only if they obtain a license from the HKMA. The law applies to any issuer of fiat-pegged stablecoins, regardless of location.
Q: How does Hong Kong’s crypto regulation compare to other financial hubs?
A: Hong Kong’s framework is aligned with global standards set by the FSB and emphasizes compliance, transparency, and investor protection — making it comparable to regimes in Singapore, Switzerland, and Japan.
Q: Will Alipay offer crypto trading in Hong Kong?
A: While not confirmed, there is speculation that Ant Group could leverage its subsidiary Yao Cai Securities’ SFC license to enable BTC/ETH trading within Alipay — a move that would significantly expand retail access.
Q: Are there any risks associated with Hong Kong’s crypto licensing approach?
A: The main risk lies in execution — ensuring strict enforcement while fostering innovation. However, by starting with a small number of licenses and maintaining high standards, Hong Kong aims to minimize systemic and compliance risks.
👉 See how leading exchanges are preparing for global compliance
Conclusion
Hong Kong’s dual-track regulatory push — through both the SFC and HKMA — is creating a robust foundation for institutional-grade digital asset services. With OSL’s rally, HashKey’s token surge, and Guotai Junan’s landmark approval, the market is responding positively to clarity and compliance.
As stablecoin regulations tighten and more traditional firms enter the space, Hong Kong is positioning itself as Asia’s premier gateway for secure, regulated crypto innovation. The coming months will be critical as the first wave of stablecoin licenses are issued and new financial products emerge.
For investors and institutions alike, the message is clear: regulated digital assets are no longer on the fringe — they’re becoming part of Hong Kong’s financial mainstream.
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