Futu Securities International Launches Cryptocurrency Trading

Futu Securities International, a major online brokerage in Hong Kong, has begun offering cryptocurrency trading services to its retail clients as part of its expansion into the crypto sector.

In a statement, Futu announced that Hong Kong investors can now trade Bitcoin and Ether directly using Hong Kong dollars or U.S. dollars. Steve Zeng, managing director of Futu Group, mentioned, “We noticed a relatively positive market response on the first day when our crypto trading services went live.”

Futu claims to be the first online brokerage in Hong Kong to provide zero-commission crypto trading. Additionally, they plan to incentivize users by providing free Bitcoin and shares of Alibaba and Nvidia to select users who open accounts and maintain their assets for a specified duration.

To offer these crypto services, Futu received a license upgrade from the Hong Kong Securities and Futures Commission (SFC), allowing it to provide crypto services to qualified retail investors. The SFC requires institutions like Futu to route their services through licensed crypto trading platforms, specifically HashKey and OSL. Currently, Futu collaborates with HashKey for crypto trading assistance.

Futu is also in the process of applying for an SFC license to operate as a virtual asset trading platform through its wholly-owned subsidiary, PantherTrade. According to the SFC’s website, PantherTrade has been placed on the list of “deemed-to-be-licensed” applicants.

Founded in 2012, Futu Holdings went public on Nasdaq in March 2019 and has broadened its services globally. Earlier this year, its Singapore subsidiary, Moomoo, acquired a full Major Payment Institution license from the Monetary Authority of Singapore, enabling it to provide crypto trading services to local investors.

Unlike the stricter regulations imposed by mainland China on crypto trading and mining, Hong Kong has embraced crypto firms since last year. In June 2023, Hong Kong initiated its crypto licensing regime for trading platforms, allowing licensed exchanges to offer retail trading services.

However, some concerns have been raised by Hong Kong lawmaker Duncan Chiu regarding the “excessively stringent” licensing regulations, which he believes have deterred major global exchanges from entering the Hong Kong market. Notably, exchanges such as OKX, Gate.io, and HTX have withdrawn their license applications in Hong Kong.