Greenland Holdings Explores Virtual Asset Trading In Hong Kong

Greenland Holdings, the largest developer in Shanghai and partially owned by the Shanghai municipal government, is set to become the first state-owned enterprise to apply for a virtual asset trading license in Hong Kong. This move highlights the Hong Kong government’s successful efforts to establish the city as a prominent trading hub for digital assets.

Expanding with Virtual Asset License

James Geng Jing, CEO of Greenland Financial Technology Group, a wholly-owned subsidiary of Greenland Holdings, stated that the application for a virtual asset operator’s license in Hong Kong would diversify their business and expand their international presence. Geng emphasized Hong Kong’s position as an international city within China, making it an ideal gateway for their digital financial business expansion.

Hong Kong’s Securities and Futures Commission (SFC) proposed new rules in February to allow retail participation in cryptocurrency trading. These rules, effective from June 1, mandate that all centralized trading platforms operating in Hong Kong or targeting Hong Kong investors must obtain licenses from the regulator.

To focus on virtual asset trading, Greenland Financial Technology will establish a new company and submit an application to the SFC. Geng expressed their desire to trade cryptocurrencies, non-fungible tokens (NFTs), and carbon emission-related products, subject to approval and compliance with Hong Kong regulations. Greenland’s entry into Hong Kong’s digital trading industry follows the footsteps of Huobi Global and OKX, two mainland China-founded cryptocurrency exchanges, which also announced their intentions to apply for licenses in Hong Kong earlier this year.

 

Supports for SFC’s Regulatory Efforts

Greenland Holdings, a Fortune 500 company, has been expanding its business beyond property development into finance, retail, hotels, and digital ventures. The company has already obtained two licenses from the SFC for securities advisory and asset management in 2016. This marks Greenland’s second attempt to enter Hong Kong’s digital business landscape. In 2018, the company participated in the application process for the initial batch of virtual bank licenses issued by the Hong Kong Monetary Authority, although it was not among the approved applicants.

Geng expressed support for the SFC’s regulatory efforts to ensure sound practices and investor protection in virtual asset trading, citing the lessons learned from the collapse of cryptocurrency exchange FTX and the failure of regional banks like Silicon Valley Bank. He emphasized that strong regulation is crucial for Hong Kong to thrive as a virtual asset trading hub.