02 Aug, 2024
Hong Kong's Futu Securities Launches Bitcoin and Ethereum Trading
In recent developments, Futu Securities International, Hong Kong's largest online broker, has launched retail cryptocurrency trading for Bitcoin and Ethereum. As of August 1, residents in Hong Kong can trade these top cryptocurrencies directly through Futu’s platform, in both Hong Kong and US dollars. This move is a significant step for Futu, following its recent acquisition of an upgraded securities license from the Securities and Futures Commission (SFC) in Hong Kong, allowing it to offer virtual asset services to both professional and retail investors.
The Backdrop and Incentives Involved
This launch is part of Hong Kong's broader strategy to position itself as a favorable environment for cryptocurrency enterprises. Futu has introduced several incentives to attract new traders. New investors who open accounts and maintain a balance of HK$10,000 over two months can earn Bitcoin credits or a share of Alibaba Group Holding. For larger deposits, rewards include shares in Nvidia. Additionally, Futu has initiated a commission-free period for cryptocurrency transactions, increasing its appeal.
Futu's collaboration with HashKey Exchange, a fully licensed cryptocurrency exchange in Hong Kong, ensures compliance with SFC regulations. This partnership guarantees that all transactions are secure and regulated, providing users with a safe avenue for digital asset trading.
Futu's Strategic Move and Its Implications
Futu's entry into the crypto market marks a significant shift, reflecting a growing recognition of the importance of integrating digital assets into the mainstream financial system. By legalizing retail crypto trading, Futu is set to expand its offerings, enhancing its competitive edge in the financial sector.
As Hong Kong aims to become a crypto hub, other financial institutions are also embracing digital assets. Recently, ZA Bank, the largest virtual bank in Hong Kong, announced exclusive reserve bank services for crypto stablecoin issuers. These developments underscore Hong Kong’s commitment to fostering a robust crypto ecosystem.
Expanding Beyond Mainland China
Futu's interest in offering crypto trading services outside mainland China began in May 2021. The company applied for licenses to expand its services to Hong Kong, Singapore, and the United States.
Futu's successful acquisition of an operational license from the SFC makes it the first online securities brokerage firm to offer direct crypto trading services in Hong Kong through its platform, the Futu Niu Niu app. This service is available to both institutional and retail investors, allowing them to purchase as little as $10 worth of Bitcoin and Ethereum.
Additional Offerings and Incentives
Besides crypto trading, Futu is also licensed to offer Bitcoin and Ethereum exchange-traded funds (ETFs) to certified institutions. These institutions can trade Bitcoin and Ethereum futures ETFs and related securities with zero commission. To attract users, Futu has launched an incentive program for early adopters, rewarding participants with tech stocks from companies like Alibaba Group Holding and Nvidia. Additionally, users can claim up to HKD 800 worth of Bitcoin.