Hafu Securities Joins the Race as Hong Kong Accelerates Its Push to Become a Virtual Asset Hub

Hafu Securities, a subsidiary of East Money, has recently received approval from the Hong Kong Securities and Futures Commission (SFC) to offer virtual asset trading services. This development adds momentum to an increasingly competitive landscape, as more players enter the virtual asset licensing space.

East Money announced that Hafu Securities holds Type 1 (dealing in securities), Type 4 (advising on securities), Type 7 (automated trading services), and Type 9 (asset management) licenses. In June 2024, the SFC approved Hafu Securities to provide virtual asset trading services through omnibus account arrangements.

Earlier, Guotai Junan International secured a full virtual asset trading license on June 24, marking a transition from a standard securities license to one that includes permissions for trading, advisory, issuance, and distribution of virtual asset products. The capital markets responded positively, with the company’s share price reaching a decade-high.

Other brokerages have since made public statements, highlighting a trend of Chinese securities firms entering this emerging market. The participation signals rising interest in a sector known for its potential scale and profitability, especially as global investors remain focused on digital assets. As of June 27, 2025, CoinMarketCap data showed the total market capitalization of the global crypto spot market had reached USD 3.26 trillion, driven in part by the volatility of leading assets like Bitcoin.

Hong Kong has been systematically enhancing its virtual asset regulatory framework. In October 2022, the city released the “Policy Statement on the Development of Virtual Assets in Hong Kong,” setting the tone for forward-looking planning. By June 2023, the SFC had implemented a licensing regime for virtual asset trading platforms, offering clear guidelines for participants.

In 2025, policy development further deepened. In February, the SFC introduced the “A-S-P-I-Re” regulatory roadmap, structuring market development across five pillars: access, safeguard, products, infrastructure, and relationships, with 12 corresponding initiatives. In May, the Legislative Council passed the Stablecoin Bill, effective from August 1, establishing licensing requirements for fiat-referenced stablecoins. In June, the “Hong Kong Digital Asset Development Policy Statement 2.0” was released, signaling an advanced phase of regulatory execution and reaffirming Hong Kong’s ambition to become a global innovation hub.

This multi-level regulatory infrastructure and Hong Kong’s independent financial oversight have helped attract global virtual asset institutions and created a favorable policy environment for brokers entering the market.

Currently, Hong Kong’s regulatory framework includes several license types: operating a virtual asset trading platform, managing portfolios with over 10% exposure to virtual assets, offering virtual asset trading through omnibus accounts, providing advisory services, and acting as introducers for virtual asset platforms.

Two licenses are especially significant: the Virtual Asset Trading Platform (VATP) license and the upgraded Type 1 license for omnibus trading. As of now, 11 platforms have received official approval to operate as VATPs. These include subsidiaries of well-known internet brokers such as Futu Securities’ Cheetah Trading (Hong Kong) Limited, Tiger Brokers’ YAX (Hong Kong) Limited, and Huasheng Capital’s invested Thousand Whales Technology (BVI) Limited.

In terms of Type 1 upgrades, as of July 10, 2025, 42 institutions had received SFC approval to provide virtual asset trading services through omnibus accounts. This group includes brokerages such as Victory Securities, Tiger Brokers, Futu Securities, TF International under TF Securities, and Hafu Securities under East Money.

Additionally, 37 firms have upgraded to Type 4 licenses to provide virtual asset investment advisory services, including Ping An Securities Hong Kong and Zhongtai International Securities. Another 40 asset managers have received upgraded Type 9 licenses for managing funds with over 10% allocation to virtual assets.

On July 11, East Money confirmed that Hafu Securities had secured the necessary approvals and holds Type 1, 4, 7, and 9 licenses. Meanwhile, other firms like CMS International and Huatai Securities International are actively advancing similar initiatives. On July 7, GF Securities stated that its Hong Kong subsidiary, GF Securities (Hong Kong) Limited, is preparing to apply for virtual asset licenses and has held discussions with relevant experienced institutions.

These developments reflect not only policy incentives but also internal business pressures. Hong Kong’s supportive regulatory approach, beginning with the 2022 policy statement and leading to the 2025 roadmap, provides a well-defined framework for entry. The city serves as a key testing ground for mainland brokers seeking to expand into digital business.

Faced with increased competition and declining margins in traditional sectors, many brokerages view virtual assets as a viable path for revenue growth. Participation in trading, advisory, and asset management of digital assets enables firms to diversify their offerings and address changing client needs.

The competitive landscape is also shaped by fintech companies like Futu and Tiger Brokers, which have already captured a significant market share in online securities trading and are extending their lead in the virtual asset space. For traditional brokers aiming to stay competitive, entering the virtual asset arena has become a strategic priority.

Still, the regulatory framework is evolving, and many firms are adopting a “license first, strategy later” approach to secure a foothold in anticipation of further developments. Acquiring a virtual asset license allows brokers to unlock new revenue streams. Trading commissions in virtual assets often exceed those in traditional equities, and opportunities exist in issuing exchange-traded funds and structured products. Asset management services further enhance client retention and assets under management. Market expectations for virtual asset-enabled brokers also tend to be higher, adding to their valuation prospects. Moreover, the appeal of digital assets and Hong Kong’s fintech infrastructure is well aligned with the preferences of younger, tech-oriented, and international investors.

For clients, licensed brokers provide a regulated and secure environment, eliminating risks associated with unregulated platforms. Investors benefit from streamlined services, with the ability to manage both stocks and virtual assets through a single platform—enhancing portfolio diversification and user experience.

From an industry perspective, the entrance of regulated brokers introduces governance standards and risk management practices that could redefine the virtual asset ecosystem. While obtaining a license is an essential first step, the ability to develop competitive infrastructure, attract users, and ensure compliance will determine long-term success.

The license itself is both a gatekeeper and a gateway. Guotai Junan International’s recent full license may mark the beginning, but the true challenge lies in establishing a sustainable business model. With price volatility, shifting regulations, and competitive pressures still in play, the broader contest for dominance in the virtual asset space has only just begun.