Kritika Mehta
Futu Securities International, the largest online brokerage in Hong Kong, has introduced retail cryptocurrency trading services in the city. This strategic move is part of a broader effort to attract a more investors amid a rising crypto bull market. Moreover, the brokerage will offer Nvidia and Alibaba shares to incentivize the latest launch.
Futu Launches Bitcoin & Crypto Services In Hong Kong
Futu’s announcement on Thursday, August 1, revealed that its users can now trade Bitcoin (BTC) and Ethereum (ETH) directly on the brokerage’s platform. Investors can use either Hong Kong or US dollars for their transactions. Moreover, this new feature comes after Futu secured an upgraded securities license from the Securities and Futures Commission (SFC) last month.
This upgrade permits Futu to offer virtual asset dealing services to both professional and retail customers in the city. Meanwhile, In a bid to attract new investors, Futu is offering a unique incentive program.
Investors who open accounts in August and deposit HK$10,000 (US$1,280) for 60 days will be rewarded. They will have the option to receive either Bitcoin worth HK$600, a HK$400 supermarket voucher, or a single share of Alibaba Group Holding, a prominent Chinese e-commerce giant.
Whilst, it will also reward those who deposit US$80,000 for the same duration, according to South China Morning Post. The incentives include either HK$1,000 in Bitcoin or a share of Nvidia (NVDA), the US-based AI chip powerhouse whose shares have surged 143% this year.
Application For Licensing New Crypto Platform
Futu’s launch of retail cryptocurrency trading aligns with the city’s broader initiative to become a global hub for virtual assets. Over the past two years, the city’s government has implemented various crypto policy initiatives, including a mandatory licensing regime for crypto exchanges. This regulatory framework aims to enhance the city’s appeal to crypto businesses and investors.
In addition to its primary brokerage app, Futu is also pursuing a crypto exchange license for its new platform, PantherTrade. Currently, PantherTrade is among 11 platforms in Hong Kong “deemed to be licensed” for trading crypto. This temporary arrangement allows these platforms to operate as they await full approval from the SFC.
However, despite these advancements, Hong Kong faces challenges in its quest to become a leading crypto hub. The city has witnessed the exit of several large global platforms. Also, there has been relatively low trading activity for the Bitcoin and Ethereum ETFs available on the local stock exchange.
Meanwhile, Futu’s entry into the retail crypto trading market occurs amid a bull market, with BTC price increasing by 45% year year-to-date. Hence, it is offering a variety of incentives and leveraging its newly obtained securities license. Moreover, Futu aims to capture the growing interest in digital assets among local investors.
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Kritika Mehta
Kritika boasts over 2 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
