Hong Kong has been making headlines in the cryptocurrency space lately for a number of reasons. One reason so far is that Futu Securities International, the largest online broker in Hong Kong, has announced its plans to expand. foot Retail cryptocurrency trading – Bitcoin and Ethereum – on its platform.
According to a recent report from the South China Morning Post, starting August 1, Hong Kong residents will now be able to participate in trading Bitcoin and Ethereum, the world’s two largest cryptocurrencies, directly through the Futu platform. The new service reportedly allows transactions in both Hong Kong dollars and US dollars.
Background and incentives included
Futu’s retail crypto trading launch comes after it recently acquired a securities license upgrade from the Hong Kong Securities and Futures Commission (SFC), expanding its scope to include virtual asset services for both professional and retail investors.
Related reading: Regulatory Reboot: Hong Kong to Amend Crypto Laws in Response to Lawmaker’s Inquiry
This development is part of a broader trend as Hong Kong continues to establish itself as a friendly environment for cryptocurrency institutions and enthusiasts. So far, the region’s regulatory framework appears to be adapting, reflecting a growing recognition of the importance of integrating digital assets into the mainstream financial system.
In a move to attract and retain new traders, Futu has also launched a series of incentives that coincide with the crypto bull market. According to the report, new investors who open accounts and maintain a balance of HK$10,000 over two months are eligible for various rewards. These include Bitcoin balances or a stake in Alibaba Group Holding. Additionally, for larger deposits, the rewards escalate to Nvidia shares.
Furthermore, Futu has launched a commission-free period for cryptocurrency transactions, further enhancing its appeal to potential customers. To further comply with Hong Kong’s regulatory standards, Futu has partnered with HashKey Exchange, one of the region’s fully licensed cryptocurrency exchanges.
The partnership reportedly ensures that all transactions meet the requirements set by the US Securities and Exchange Commission, providing users with a “safe and regulated” way to explore digital asset trading.
Hong Kong is getting closer to becoming a cryptocurrency hub
In addition to Futu, many other companies in Hong Kong’s financial sector have now begun to embrace cryptocurrencies in every possible way, pushing Hong Kong towards its goal of becoming a crypto hub.
ZA Bank, Hong Kong’s largest virtual bank, recently announced that it will begin offering exclusive reserve banking services to crypto stablecoin issuers.
According to Bitcoinist, the announcement was perfectly timed as it follows the emergence of a stablecoin licensing regime in the region that requires stablecoin operators to deposit reserve assets with local banks.
Featured image created using DALL-E, chart from TradingView