Hong Kong licensed broker enters the virtual asset space, Delin Securities to launch trading services in February

Delin Securities has obtained an upgrade to its virtual asset trading license from the Hong Kong Securities and Futures Commission (SFC), signifying that licensed financial institutions in Hong Kong are officially entering the crypto asset space. According to the latest news, the upgrade of Delin Holdings’ Delin Securities Class 1 license took effect on December 30, 2025, and virtual asset trading services are expected to commence after system integration is completed in February 2026. This marks another important signal of the ongoing improvement of Hong Kong’s virtual asset regulatory framework.

Key Timeline for License Upgrade

This upgrade involves the Class 1 regulated activity license, which is the license for securities trading. It is not a simple addition of a new license but an extension within the existing compliance framework, meaning Delin Securities will conduct virtual asset trading under the strict supervision of the SFC.

Significance of Licensed Institutions Entering the Market

Implementation of the Regulatory Framework

The SFC released guidelines for virtual asset trading platforms in 2023, but few licensed brokerages have actually implemented this framework. Delin Securities’ move indicates that Hong Kong’s virtual asset regulatory framework has moved from guidance to actual operational practice. This is a positive signal for the entire market—regulatory policies are no longer just on paper but are being executed by real market participants.

Institutional-Level Market Participation

Delin Holdings is a listed company in Hong Kong with a complete licensing system. When such a formal player enters the virtual asset space, it signifies a shift in the market participant structure. Moving from primarily crypto-native platforms to the involvement of traditional financial institutions, this change could attract more institutional funds and clients.

Enhanced Risk Management

Licensed institutions typically require stricter risk management processes, client fund segregation, anti-money laundering compliance, and other standards. Delin Securities needs to complete system connection and testing with the licensed platform regulated by the SFC, which is itself an upgrade of compliance infrastructure. This could elevate the overall risk management level of the market.

Potential Market Impact

Increased Institutional Participation

With licensed brokerages entering the space, some institutional clients previously hesitant about virtual assets may become more willing to participate. Backed by a complete licensing system and a listed company background, Delin Securities’ move can boost market confidence.

Gradual Market Structure Improvement

The transition from “wild growth” to “licensed operation” is a long-term process. Each entry of a formal player promotes the market toward more regulation and standardization. While it may not immediately change the market landscape, in the long run, the participation of licensed institutions will gradually improve overall market quality.

Changes in Competitive Landscape

Currently, the number of licensed virtual asset trading platforms in Hong Kong is limited. The entry of Delin Securities could disrupt the existing market pattern and prompt other licensed institutions to follow suit. Once a “competition among licensed institutions” forms, the market may enter a new development phase.

Summary

Delin Securities’ upgrade to its virtual asset trading license and the expected February launch of services reflect a shift in Hong Kong’s virtual asset regulatory framework from guidance documents to practical implementation. The entry of licensed brokerages signifies an improvement in the market participant structure, an increase in institutional-level involvement, and enhancements in overall risk management and compliance. While this is not an event that will immediately transform the market, it represents an important direction—virtual assets are moving from the periphery toward the mainstream financial system. Future developments to watch include whether this step will trigger follow-up actions from other licensed institutions and how the market structure will evolve.