Futu Securities International, Hong Kong’s largest online broker, has officially launched crypto trading to retail investors on its platform.
A local news publication reported that this move allows Hong Kong residents to trade Bitcoin and Ether directly on the Futu platform, using either Hong Kong or US dollars.
The initiative follows the company’s recent upgrade in securities licensing from the Securities and Futures Commission (SFC), enabling Futu to offer virtual asset dealing services to professional and retail customers.
Futu Offers a Range of Incentives to Attract Retail Crypto Traders
Futu is providing many incentives to draw in investors. Upon depositing HK$10,000 (US$1,280) within the first sixty days, new account users will have the option of obtaining a single Alibaba share, a HK$400 supermarket voucher, or a Bitcoin worth HK$600. Furthermore, as of this Thursday and continuing until further notice, the broking is waiving commission fees for cryptocurrency trading.
This venture is a component of Hong Kong’s larger plans to become a major virtual asset hub. The local administration has implemented several regulations that are favourable to cryptocurrencies, such as requiring exchanges to obtain licenses.
In addition, Futu is working to obtain a cryptocurrency exchange license for PantherTrade, one of its new platforms. It is presently one of 11 platforms that have been “deemed to be licensed” and is awaiting final SFC clearance. As of right now, Futu provides cryptocurrency trading through a collaboration with HashKey Exchange, one of Hong Kong’s two authorised exchanges.
Following its licence update in May, Futu’s local rival Tiger Brokers has also entered the cryptocurrency trading market and is providing services to professional investors. Professional investors are defined by the SFC as those who are either individuals or business entities with assets over HK$40 million or with investment portfolios exceeding HK$8 million.
Hong Kong & the Crypto Space
There have been obstacles on Hong Kong’s path to becoming a hub for cryptocurrency, including the withdrawal of significant international platforms and a lack of trading activity for cryptocurrency exchange-traded funds on the local stock exchange.
However, things have changed over the past few years and people have started to show more and more interest in the crypto space. In light of the city’s increased interest in digital assets amid a burgeoning cryptocurrency market, Futu’s launch is a significant step towards making cryptocurrency trading more accessible to ordinary investors in Hong Kong.
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