In a bold move, Futu Securities International, the largest online broker in Hong Kong, has recently entered the retail cryptocurrency trading scene in the city-state. This decision marks a significant step towards attracting more investors by offering the opportunity to trade popular cryptocurrencies such as bitcoin and ether.
Futu Securities International has partnered with HashKey Exchange, one of the few licensed cryptocurrency exchanges in Hong Kong, to provide its customers with a seamless crypto trading experience. Investors in Hong Kong can now trade bitcoin and ether on the brokerage platform using either Hong Kong or US Dollars. Moreover, Futu is enticing new investors by offering incentives such as shares of Alibaba Group Holding and Nvidia.
According to reports, investors who open accounts in August and deposit HK$10,000 for a period of 60 days can choose to receive HK$600 worth of Bitcoin, a HK$400 supermarket voucher, or a single Alibaba share. On the other hand, depositing $80,000 for the same period will earn users either HK$1,000 in Bitcoin or a share of Nvidia, a US AI chip firm with soaring stock prices.
With the removal of commission fees for crypto trading starting from 1st August, Futu Securities International aims to position itself as a frontrunner in the cryptocurrency trading space. Apart from offering crypto trading on its primary brokerage app, the company is also in the process of obtaining a cryptocurrency exchange license for its new platform, PantherTrade, in Hong Kong.
Despite Hong Kong’s efforts to establish itself as a crypto hub, the city-state has encountered challenges such as the departure of major global platforms and low trading volumes for crypto ETFs on the local stock exchange. The recent arrest of individuals involved in a crypto fraud case and the issuance of a red notice by Interpol to a local crypto promoter highlight the increasing prevalence of fraudulent activities in the cryptocurrency market.
In response to these challenges, authorities in Hong Kong have stepped up their efforts to combat fraudulent activities in the crypto space. The Hong Kong law enforcement agencies have gained valuable experience in tracking money laundering involving digital assets, while the Securities and Futures Commission (SFC) has intensified its scrutiny of unlicensed trading platforms. Recently, the SFC issued warnings to seven such platforms, signaling a firm stance against dubious crypto entities operating in Hong Kong.
The entry of Futu Securities International into the retail cryptocurrency trading market in Hong Kong is a significant development that underscores the growing influence of digital assets in the region. However, as the crypto market continues to evolve, regulatory measures and vigilance against fraudulent activities will be crucial in ensuring the integrity and stability of the cryptocurrency trading ecosystem in Hong Kong.
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