Futu Securities International, the largest online broker in Hong Kong, has ventured into retail cryptocurrency trading. The company aims to incentivize investors by offering rewards through shares of prominent companies like Alibaba Group Holding and Nvidia.
Currently, Hong Kong residents can trade Bitcoin and Ether, the leading cryptocurrencies, directly on Futu’s brokerage platform using either Hong Kong or US dollars, according to a South China Morning Post report.
The move follows Futu’s recent upgrade of its securities license by the Securities and Futures Commission (SFC), permitting the company to offer virtual asset dealing services to both professional and retail customers in Hong Kong.
But let’s not get carried away. Futu’s move comes with careful regulatory compliance. Hong Kong’s Securities and Futures Commission (SFC) has strict guidelines to ensure investor protection. Safety first!
— 0xMike (@riduanmikhaelh) August 2, 2024
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Futu Pushes Forward With Crypto Plans
In addition to integrating crypto trading into its main brokerage app, Futu is also seeking a cryptocurrency exchange license for its new platform, PantherTrade.
Currently, PantherTrade is among 11 platforms in Hong Kong that are “deemed to be licensed” for trading crypto, an interim status allowing them to operate while awaiting full approval from the SFC.
Despite these efforts, Hong Kong’s path to becoming a crypto hub has faced hurdles, such as the departure of major global platforms and relatively low trading volumes for crypto exchange-traded funds on the local stock exchange.
To attract investors in the current crypto bull market, which has seen Bitcoin’s price surge by 45% this year, Futu is offering various incentives.
For one, Hong Kong investors who open accounts in August and deposit HK$10,000 (US$1,280) over the next 60 days can choose between HK$600 worth of Bitcoin, a HK$400 supermarket voucher, or a share of Chinese e-commerce giant Alibaba.
Investors holding US$80,000 for the same period can also receive either HK$1,000 in Bitcoin or a share of US AI chip leader Nvidia, whose stock has risen more than 140% this year.
Furthermore, Futu is waiving commission fees for crypto trading starting from Thursday until further notice, according to a company representative.
Meanwhile, Futu’s competitor, Tiger Brokers, announced in May that it had begun providing cryptocurrency trading services to professional investors on its platform following a similar license upgrade.
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Hong Kong Seeks to Become a Crypto Hubd
The new offering from Futu comes as Hong Kong has been seeking to establish itself as a global crypto hub. Over the past two years, the city’s government has introduced several new crypto policy initiatives, including a mandatory licensing regime for cryptocurrency exchanges.
However, the city-state has witnessed a series of crypto exchange closures lately. In total, 13 companies have withdrawn or returned their license applications.
On 28 March 2024, HKVAEX, suspected to be affiliated with Binance, withdrew its license application. Subsequently, IBTCEX, QuanXLab, and Huobi HK followed suit, followed by Gate. HK, OKX HK, and Bybit were next in line to withdraw applications.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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