Futu Securities International, the largest online broker in Hong Kong, has recently ventured into retail cryptocurrency trading in the city-state. This move aims to attract investors by offering shares of popular companies like Alibaba Group Holding and Nvidia. This development allows residents of Hong Kong to easily trade bitcoin and ether using either Hong Kong or US Dollars on the brokerage platform. In partnership with HashKey Exchange, one of the two licensed cryptocurrency exchanges in Hong Kong, Futu now offers crypto trading services to its customers.
According to reports, investors in Hong Kong who open accounts in August and deposit HK$10,000 for a period of 60 days can receive incentives such as HK$600 worth of Bitcoin, a HK$400 supermarket voucher, or a single Alibaba share. For larger deposits of $80,000, users can receive either HK$1,000 in Bitcoin or a share of Nvidia. This move by Futu aims to encourage more investors to participate in cryptocurrency trading by providing attractive rewards for their deposits.
In addition to the promotional offers, Futu Securities International has announced the removal of commission fees for crypto trading starting from 1st August onwards. This bold move is aimed at making cryptocurrency trading more accessible and cost-effective for its users. Furthermore, the brokerage is actively seeking a cryptocurrency exchange license for its new platform, PantherTrade, in Hong Kong. This platform is among the 11 in Hong Kong that are currently authorized for crypto trading, demonstrating Futu’s commitment to complying with regulatory requirements.
Despite positioning itself as a cryptocurrency hub, Hong Kong has encountered challenges such as the departure of major global platforms and low trading volumes for crypto ETFs on the local stock exchange. Recent fraud cases, including the arrest of individuals suspected of defrauding a businessman through counterfeit banknotes, have raised concerns about the security of cryptocurrency investments in Hong Kong. This has prompted authorities to enhance their enforcement efforts and crack down on fraudulent activities related to digital assets.
To address the rising concerns around cryptocurrency fraud, the Securities and Futures Commission (SFC) in Hong Kong has intensified its scrutiny of dubious crypto entities. This includes issuing warnings to seven unlicensed trading platforms this month alone. The SFC’s efforts to monitor and regulate the cryptocurrency market in Hong Kong underscore the importance of protecting investors and maintaining the integrity of the financial system. By working closely with industry stakeholders and law enforcement agencies, the SFC aims to promote transparency and accountability in the rapidly evolving landscape of cryptocurrency trading.
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