Several local brokers in Hong Kong have completed the upgrade of License No. 1, and more institutions may enter the market in the future.

According to a report by Jin10 on June 26, insiders directly involved in the virtual asset license application and system integration have revealed that several local brokerage firms in Hong Kong (such as Victory Securities (08540.HK), Adept Securities, etc.) have completed the upgrade of License No. 1. Guotai Junan International is not the only Chinese-funded brokerage firm applying for a license, and more institutions may enter the market in the future. The brokerages mainly provide "distributor" type trading services, rather than operating their own exchanges. Specifically, their model involves setting up an Omnibus Account within licensed exchanges and providing clients with trading channels for mainstream compliance coins such as BTC and ETH through access to trading systems, without involving high-risk alts or scamcoins. Currently, the aforementioned local brokerages have launched similar distribution services, and their compliance requirements for client due diligence (KYC), suitability management, and investor education are basically consistent with those of Guotai Junan International, and they all prohibit residents of mainland China from participating in trading. (Yicai)