BlockBeats News, June 26th. According to industry insiders directly involved in virtual asset license applications and system integration, several local Hong Kong brokerage firms (such as Victory Securities, ED Securities, etc.) have completed the upgrade to License 1. Guotai Junan International is not the only Chinese-funded brokerage firm applying for a license, and more institutions may join in the future.

Brokerage firms mainly engage in the "distribution" of trading services, rather than operating proprietary exchanges. Specifically, their model is to establish a comprehensive account (Omnibus Account) within a licensed exchange, connect to the trading system, and provide customers with buying and selling channels for mainstream compliant cryptocurrencies such as BTC, ETH, without involving high-risk meme coins or rug pulls. Currently, several local brokerage firms have launched similar distribution services, and their compliance requirements regarding customer due diligence (KYC), suitability management, and investor education are basically consistent with Guotai Junan International. Moreover, they all prohibit Chinese mainland residents from participating in transactions. (Yicai)