Futu Securities International – the largest online broker in Hong Kong – has started offering retail cryptocurrency trading in the city-state.
The latest move involves attracting investors with shares of Alibaba Group Holding and Nvidia. Residents of Hong Kong can now trade bitcoin and ether on the brokerage platform with Hong Kong or US Dollars. Futu has partnered with HashKey Exchange, one of the only two licensed cryptocurrency exchanges in Hong Kong, to offer crypto trading services.
Futu Attracts Investors with Alibaba and Nvidia
According to the report by South China Morning Post, investors in Hong Kong who open accounts in August and deposit HK$10,000 (worth around $1,280) for a period of 60 days can receive either HK$600 worth of Bitcoin, a HK$400 supermarket voucher, or a single Alibaba share.
Depositing $80,000 for the same period will get users either HK$1,000 in Bitcoin or a share of Nvidia, the US AI chip firm whose shares have risen by approximately 130% this year. The brokerage has also removed commission fees for crypto trading starting 1st August until further notice.
Alongside providing crypto trading on its primary brokerage app, Futu is also seeking a cryptocurrency exchange license for its new platform, PantherTrade, in Hong Kong. This platform is one of 11 in Hong Kong that are currently “deemed to be licensed” for crypto trading, allowing them to operate while awaiting full approval from the SFC.
Setbacks to Crypto Hub Dream
Although Hong Kong has positioned itself as a crypto hub, it has faced challenges like the exit of major global platforms and low trading volumes for crypto ETFs on the local stock exchange.
The Hong Kong police arrested three individuals in July suspected of defrauding a businessman out of HK$3.11 million, in crypto assets by offering him three bundles of counterfeit HK$1,000 banknotes. More recently, Wong Ching-kit, a Hong Kong native and crypto promoter, was issued a red notice by Interpol for fraud and theft.
It is this increase in fraudulent activities that has led authorities to improve their skills. Experts mention that Hong Kong has gained significant law enforcement experience in tracking money laundering involving digital assets. Additionally, the SFC has heightened its scrutiny of dubious crypto entities, issuing warnings to seven unlicensed trading platforms this month.
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