CMB Securities Debuts Round-the-Clock Virtual Asset Trading

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CMB
  • CMB expands in Hong Kong with licensed crypto services for professional investors.
  • Hong Kong’s strong regulations boost its role as a virtual asset hub.
  • Blending traditional and digital assets attracts institutional investors.

CMB International Securities, a subsidiary of China Merchant Bank, has launched a controlled digital asset trading platform in Hong Kong. The move comes as the first securities firm backed by a Chinese bank to offer licensed cryptocurrency trading following financial rules in a city.

The site allows professional investors the right to buy and sell the three leading virtual assets: Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). As opposed to regular markets, one can trade 24 hours a day, given the crypto industry’s round-the-clock pattern.

CMB Expands Services Amid Hong Kong Crypto Push

This is in line with the launch as Hong Kong intensifies its position as a regional hub of regulated virtual asset services. The Securities and Futures Commission (SFC) has been playing a major role in steering the emergence of a transparent and safe trading environment among investors.

In July 2024, CMB International had already received trading and securities dealing licenses as well as automated trading services. Under these approvals, the company can conduct its virtual asset platform on the financial structure in Hong Kong.

Venturing into this market would help the subsidiary add value to the parent company’s offerings in the city’s financial sector. By the year 2024, CMB International became the holder of assets in the amount of over 130 billion yuan and a growth rate of almost 15% per year. Introduction of the cryptocurrency services will see it target both institutional and wealth clients in search of a diversified portfolio.

Secure Trading and Strict Compliance Measures

The new platform gives the concern of investor protection whereby high standards of security are relevant. It also supports cold-wallet storage, continuous risk mitigation, and regular third party auditing. These systems meet the specifications in the Hong Kong SFC regulation of the virtual asset service providers.

Know Your Customer (KYC) and anti-money laundering checks (AML) will be required to ensure compliance prior to trading. The company has also worked with OKX Planet to increase liquidity and stability during times of great activity.

This is to develop confidence amongst investors, together with the high degree of financial security that is required by the region.

Crypto Integration Expands Hong Kong’s Investment Landscape

CMB International’s move to enter the virtual asset market is projected to fast-track the participation of institutions in Hong Kong. The platform enables investors to access not only traditional assets, like equities and bonds, but also digital ones, in the same account system.

This comprehensive approach is attractive to institutional players who are in search of efficiency and diversification. Visions of other identical Chinese securities firms, Guotai Junan International and Tianfeng International, were said to be investigating the same.

In the meantime, the market just saw the introduction of the Stablecoin Ordinance, which provided even more clarity into the digital finance framework in Hong Kong. By governing fiat-backed stablecoin issuance and prohibiting unlicensed products or derivatives, the ordinance helps contribute to a safer investment environment for retail and professional investors alike.