China’s First State-Owned Firm Greenland To Expand Crypto Market In Hong Kong

Key Points:

• A subsidiary of Greenland Holdings plans to apply for a virtual asset license in Hong Kong.
• The new company will focus on trading crypto, NFTs, and products related to carbon emissions.
• It is reported that 46.4% of the shares of Greenland Holdings are held by the Shanghai municipal government.

According to the South China Morning Post, Greenland Holdings’ subsidiary aims to seek a virtual asset license in Hong Kong.

Greenland Financial Investment Holdings Group chairman James Geng Jing visited Hong Kong last week for an exclusive interview and announced that Greenland Financial Technology would establish a new firm to specialize in virtual asset transactions.

“By applying for a virtual asset operator’s licence in Hong Kong, it will further diversify our business and expand our international footprint,” said Geng Jing.

Greenland is the first state-owned firm to indicate interest in joining Hong Kong’s digital trading market, indicating that the Hong Kong government’s attempts to promote the city as a virtual asset trading center have gained traction.

The decision was motivated by Hong Kong’s status as an international metropolis that is also a part of China, according to Geng.

“As Hong Kong is launching a new regulatory regime for virtual asset trading platforms, it is the perfect timing for Greenland to enter into this business in Hong Kong,” he added.

The new firm will trade cryptocurrency, NFTs, and carbon-related items. According to reports, the Shanghai city government owns 46.4% of Greenland Holdings.

In February, Hong Kong’s securities regulator, the Securities and Futures Commission (SFC), proposed new rules for retail participation in cryptocurrency trading, stating that retail investors will be able to purchase tokens with large market capitalizations, such as Bitcoin and Ethereum, on licensed virtual-asset platforms.

Any centralized trading platforms for virtual assets operating in Hong Kong or offering their services to Hong Kong investors will need to be licensed by the regulator under new regulations that take effect on June 1. Greenland already has two SFC licenses, gained in 2016, to operate securities advice and asset management services.

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Harold

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