Hong Kong has been making waves in the cryptocurrency space recently, with the largest online broker in the region, Futu Securities International, introducing retail cryptocurrency trading for Bitcoin and Ethereum on its platform. This move, reported by the South China Morning Post, allows residents in Hong Kong to directly engage in trading the top two cryptocurrencies globally, with transactions available in both Hong Kong and US dollars.
The launch of retail crypto trading by Futu follows its acquisition of a securities license upgrade from the Securities and Futures Commission (SFC) in Hong Kong, expanding its services to include virtual asset services for both professional and retail investors. This development is part of a broader trend in Hong Kong, as the region establishes itself as a friendly environment for cryptocurrency enterprises and enthusiasts.
To attract new traders, Futu has introduced incentives such as rewards for new investors who open accounts and maintain a balance of HK$10,000 over two months. These rewards include Bitcoin credits, shares of Alibaba Group Holding, and for larger deposits, shares in Nvidia. Additionally, Futu has implemented a commission-free period for cryptocurrency transactions to enhance its appeal to potential customers.
In order to comply with Hong Kong’s regulatory standards, Futu has partnered with HashKey Exchange, a fully licensed cryptocurrency exchange in the region. This collaboration ensures that all transactions meet the requirements set out by the SFC, providing users with a secure and regulated avenue to explore digital asset trading.
The move by Futu and other financial companies in Hong Kong towards embracing cryptocurrency is pushing the region closer to its goal of becoming a crypto hub. ZA Bank, the largest virtual bank in Hong Kong, recently announced that it will offer exclusive reserve bank services to crypto stablecoin issuers, following the debut of the region’s stablecoin licensing regime. This regime requires stablecoin operators to deposit reserve assets with local banks, further solidifying Hong Kong’s position as a growing hub for cryptocurrency innovation and adoption.