Sources: Guotai Junan International is not the only Chinese brokerage applying for a license; several local Hong Kong brokerages have completed the upgrade of License No. 1.

On June 26, industry insiders directly involved in the virtual asset license application and system integration revealed that several local Hong Kong brokerages (such as Victory Securities, Ade Securities, etc.) have completed the upgrade of License No. 1. Guotai Junan International is not the only Chinese-funded brokerage applying for a license, and more institutions may enter the market in the future. The brokerages primarily conduct “distribution” type trading services rather than operating their own exchanges. Specifically, their model involves setting up an Omnibus Account within a licensed exchange, providing clients with trading channels for mainstream compliant coins such as BTC and ETH, without involving high-risk alts or scamcoins. Currently, the aforementioned local brokerages have launched similar distribution services, and their compliance requirements regarding customer due diligence (KYC), suitability management, and investor education are basically consistent with those of Guotai Junan International, and all prohibit residents of mainland China from participating in trading. (Yicai)