First State-Owned Chinese Company Applies for Hong Kong Crypto License: Pros, Cons, and Impact

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First state-owned Chinese company seeks Hong Kong crypto license, intricate cyberpunk cityscape at dusk, Hong Kong skyline with glowing neon signs, strong contrast between shadows and illuminated buildings, virtual trading platforms and digital assets like cryptocurrencies and NFTs integrated into the scene, cool tones reflecting a forward-looking, ambitious mood.

A subsidiary of Greenland Holdings, Greenland Financial Technology Group, is taking a bold step by being the first state-owned Chinese company to apply for a virtual asset trading license in Hong Kong. The South China Morning Post shared this groundbreaking news and quoted the group’s CEO, James Geng Jing, who revealed plans to establish a company dedicated to virtual asset trading, and to apply for the necessary license in Hong Kong.

The need for a license to operate or market virtual asset trading platforms in Hong Kong arises from new rules set by the Securities and Futures Commission (SFC) which come into effect on June 1. Already an experienced player in this domain, Greenland Financial Technology Group currently holds two licenses from the SFC in securities advising and asset management. In 2018, they applied for a virtual bank license but were not chosen.

According to Geng, the proposed new Greenland unit would engage in trading various digital assets, including cryptocurrencies, nonfungible tokens (NFTs), and carbon emission-related products. The subsidiary’s foray into these domains is evidence of the company’s readiness to make a more significant entrance into Hong Kong’s virtual asset market.

In 2020, Greenland Financial Technology Group received a digital banking license in Singapore, increasing its experience in digital business. Geng stated, “After getting experience providing digital banking in Singapore, along with our expansion in digital business in the mainland in the past five years, we are confident that we are ready to step into Hong Kong now.”

Geng also acknowledged the importance of robust regulation and investor protection in developing Hong Kong as a virtual asset trading hub. As a wholly-owned subsidiary of Greenland Holdings, a Shanghai-based real estate developer with 46.4% ownership by the Shanghai municipal government, the group’s move into the virtual asset trading world shows its versatility and ambition across various sectors, including fintech.

Hong Kong seems to be leading by example in developing its digital asset market, staying ahead of global trends, and showcasing the potential to rival the United States as a primary center for the crypto industry. Other cryptocurrency exchanges, such as Huobi Global and OKX, both with origins in mainland China, have already applied for Hong Kong virtual asset trading licenses in February, according to the South China Morning Post.

In conclusion, the bold move by Greenland Financial Technology Group is a clear demonstration of the significant potential of Hong Kong’s virtual asset market. The ongoing expansion and adoption of digital assets emphasize the need for robust regulations, investor protection, and ultimately, the potential for Hong Kong to become a global hub in the ever-growing crypto industry.

Source: Cointelegraph

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