Futu Securities International, the largest online broker in Hong Kong, has recently introduced retail cryptocurrency trading services in the city-state. This move aims to attract investors by offering the opportunity to trade bitcoin and ether on their platform using Hong Kong or US Dollars. Futu has partnered with HashKey Exchange, one of the two licensed cryptocurrency exchanges in Hong Kong, to provide these services.
In an effort to entice investors, Futu is offering special incentives for those who open accounts and make deposits. For example, investors who deposit HK$10,000 for a period of 60 days can receive HK$600 worth of Bitcoin, a HK$400 supermarket voucher, or a share of Alibaba Group Holding. On the other hand, depositing $80,000 for the same period will get users either HK$1,000 in Bitcoin or a share of Nvidia, the US AI chip firm that has seen a significant increase in its share price this year. Additionally, the brokerage has waived commission fees for crypto trading starting from 1st August.
Aside from providing crypto trading on its primary brokerage app, Futu is also in the process of obtaining a cryptocurrency exchange license for its new platform, PantherTrade, in Hong Kong. This platform is among the 11 in Hong Kong that are currently allowed to operate while awaiting full approval from the SFC.
Despite Hong Kong’s efforts to establish itself as a crypto hub, there have been challenges such as the departure of major global platforms and low trading volumes for crypto ETFs on the local stock exchange. The recent arrests of individuals involved in crypto fraud cases, including the issuance of a red notice by Interpol to a crypto promoter, have highlighted the need for increased vigilance in the industry.
To combat fraudulent activities, authorities in Hong Kong are enhancing their skills in tracking money laundering involving digital assets. The SFC has also stepped up its scrutiny of unlicensed trading platforms, issuing warnings to seven entities this month.
Overall, the introduction of cryptocurrency trading services by Futu Securities International in Hong Kong represents a significant development in the city-state’s financial landscape. With attractive incentives for investors and plans for a licensed cryptocurrency exchange platform, Futu aims to capitalize on the growing interest in digital assets while ensuring a secure and convenient trading experience for its users.