Hong Kong’s DL Securities Secures Conditional Virtual Asset Trading License - Regulatory Green Light for Crypto Expansion

Hong Kong just handed a major player the keys to the kingdom—conditionally, of course. DL Securities cleared a critical regulatory hurdle, positioning itself to dive headfirst into the virtual asset trading arena. This isn't just another license; it's a signal flare for institutional crypto adoption in one of Asia's premier financial hubs.

The Path to Permission

Forget vague promises of future frameworks. Hong Kong's regulators moved with deliberate speed, granting conditional approval that sets a clear precedent. It shows a maturing market where established financial institutions can navigate the rules rather than operate in the shadows. The move effectively bridges traditional finance with the digital asset world—no small feat in a landscape often defined by its gaps.

What Conditional Really Means

Conditional approval is the regulatory equivalent of 'trust, but verify.' DL Securities now operates under a watchful eye, needing to demonstrate strict compliance with anti-money laundering protocols, custody solutions, and investor protection measures before the 'conditional' tag gets dropped. It's a phased rollout designed to mitigate risk without stifling innovation.

A Ripple Across the Region

This decision sends a powerful message to other financial giants sitting on the crypto sidelines. Hong Kong is methodically building a regulated on-ramp for major capital. Watch for competing firms to fast-track their own applications, lest they get left behind in the scramble for legitimized market share. It turns regulatory compliance from a barrier into a competitive moat.

The Institutional Floodgates Creak Open

With a licensed, traditional securities firm entering the fray, the customer base expands exponentially. We're talking about accredited investors and institutional funds that previously viewed crypto exchanges as too wild west. This brings liquidity, stability, and a sheen of legitimacy that pure-play crypto platforms have spent years chasing. It's a credibility injection straight into the market's veins.

Balancing Act: Innovation vs. Control

Hong Kong's approach walks a tightrope. By granting conditional licenses, it fosters innovation within a controlled sandbox. The goal is clear: attract serious business while filtering out bad actors. It's a pragmatic strategy for a city determined to reclaim its fintech crown—proving that sometimes, the most bullish move in crypto isn't a trade, but a rulebook. After all, nothing makes traditional finance embrace disruption quite like the chance to regulate it first.

DL Securities (Hong Kong) Limited has received conditional approval from the Hong Kong Securities and Futures Commission (SFC) to provide VIRTUAL asset trading services, marking the subsidiary's entry into Hong Kong's regulated crypto trading sector.

The Hong Kong-based brokerage, owned by DL Holdings (1709.HK), accepted the SFC's conditions for upgrading its Type 1 securities dealing license to include virtual asset trading as of December 29, 2025, according to a company statement on Monday. The firm will commence crypto trading upon receiving formal SFC approval.

DL Securities said it plans to open omnibus accounts with OSL, an SFC-licensed virtual asset trading platform, to provide professional investors with execution services including virtual asset trading and fiat-to-crypto conversions. Services will initially target professional investor clients within the firm's existing securities dealing business.

Digital Assets Already Deployed

DL Holdings has positioned itself ahead of the license approval by establishing holdings in both tokenized real-world assets and digital currencies. The company has tokenized HK$60 million ($7.7 million) of its HK$500 million DL Tower property in Hong Kong's Central district and completed tokenization plans for its HK$312 million equity stake in U.S. luxury real estate project ONE Carmel.

The group operates nearly 10,000 mining rigs generating approximately two bitcoins daily and has outlined an additional HK$800 million digital asset investment pathway, split between HK$560 million for computing power and HK$240 million for tokenized Gold assets.

Following the license upgrade, DL Securities will offer professional and institutional investors compliant trading services covering Bitcoin, Ethereum, and proprietary real estate and equity-type RWA products.

"The license is a key—it opens the door for us to provide compliant services to investors worldwide," said Andy Chen, chairman and CEO of DL Holdings Group.

The approval positions DL Securities among a limited group of Hong Kong financial institutions holding full licenses for both traditional securities and virtual assets. The firm's Type 4 license upgrade for advising on securities is currently under final SFC review.