By Sharan Kaur Phillora
Futu Securities, Hong Kong’s largest online brokerage, has officially launched Bitcoin and Ethereum trading for its 22 million users, marking a milestone in the city’s push to become a global cryptocurrency hub. This makes Futu the first brokerage in Hong Kong to directly offer Bitcoin and Ether trading to retail investors.
Here’s what we know:
Futu’s decision follows its recent upgrade in securities licensing from the Hong Kong Securities and Futures Commission (SFC), which now permits the brokerage to provide virtual asset dealing services to both professional and retail customers. The trading of Bitcoin and Ethereum went live on July 23, 2024, and has already seen robust activity. Bitcoin’s open interest reached a record high of $39.4 billion on July 29, indicating strong market interest and potential for price increases.
To attract investors, Futu is offering a range of incentives, including shares of high-profile companies like Alibaba Group Holding and Nvidia as rewards. For instance, customers who deposit HK$10,000 for 60 days can earn HK$600 worth of Bitcoin or vouchers and shares. Larger deposits yield even more substantial rewards. Additionally, Futu is waiving commission fees for Bitcoin trading to gain market share and enhance user adoption.
Futu’s entry into the cryptocurrency market aligns with Hong Kong’s broader strategy to position itself as a leading center for digital finance. Over the past two years, the city has introduced several new crypto policies, including a mandatory licensing regime for cryptocurrency exchanges. Futu is also pursuing a full cryptocurrency exchange license for its new platform, PantherTrade, which is currently one of 11 “deemed licensed” interim exchanges awaiting full SFC approval.
The brokerage has partnered with HashKey Exchange, one of the two licensed cryptocurrency exchanges in Hong Kong, to comply with SFC regulations. This collaboration ensures that Futu can offer secure and regulated cryptocurrency trading services to its users.
The launch of Bitcoin and Ethereum trading by Futu Securities is a pivotal development in Hong Kong’s financial landscape, reflecting the growing acceptance and integration of digital assets in mainstream finance. As the city continues to enhance its regulatory framework and attract more crypto-related businesses, Futu’s initiative is expected to drive significant retail volume and further solidify Hong Kong’s status as a burgeoning crypto hub.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
