Hong Kong has been making headlines in the cryptocurrency space for a few reasons in recent times. One reason is that Futu Securities International, Hong Kong’s largest online broker It was introduced retail trading of cryptocurrencies – Bitcoin and Ethereum – on its platform.
According to a recent report from the South China Morning Post, as of August 1, Hong Kong residents can trade Bitcoin and Ethereum, the world’s two most popular cryptocurrencies, directly through the Futu platform. The novel service, it is reported, allows transactions in both Hong Kong and US dollars.
Background and stimuli involved
Futu’s launch of retail cryptocurrency trading comes after the firm recently obtained a higher securities trading license from the Securities and Futures Commission (SFC) in Hong Kong, expanding its scope to include virtual asset services for both professional and retail investors.
Related reading: Regulatory reboot: Hong Kong to adjust cryptocurrency rules in response to lawmaker’s inquiry
The development is part of a broader trend as Hong Kong continues to establish itself as a welcoming environment for businesses and cryptocurrency enthusiasts. So far, the region’s regulatory framework appears to be adapting, reflecting a growing awareness of the importance of integrating digital assets into the mainstream financial system.
To attract and retain novel traders, Futu has also launched a series of incentives that coincide with the cryptocurrency bull market. According to the report, novel investors who open accounts and maintain a balance of HK$10,000 for two months are eligible for various rewards. These include Bitcoin credits or shares in Alibaba Group Holding. Additionally, for larger deposits, the rewards boost to shares in Nvidia.
Futu has also initiated a commission-free period for cryptocurrency transactions, making it more attractive to potential customers. To further align with Hong Kong’s regulatory standards, Futu has partnered with HashKey Exchange, one of the fully licensed cryptocurrency exchanges in the region.
As reported, this collaboration ensures that all transactions meet the requirements set by the SFC, providing users with a “safe and regulated” opportunity to explore digital asset trading.
Hong Kong is on the verge of becoming a cryptocurrency hub
Apart from Futu, several other financial sector companies in Hong Kong have also started to apply cryptocurrencies in every possible way, supporting Hong Kong in its quest to become a cryptocurrency hub.
Recently, ZA Bank, the largest virtual bank in Hong Kong, announced that it will begin offering exclusive Reserve Bank services to stablecoin issuers.
According to Bitcoinist, the announcement comes at an ideal time, as it comes on the heels of the debut of a regional stablecoin licensing system that required stablecoin operators to deposit their reserve assets with local banks.
Featured image created with DALL-E, chart from TradingView
