Traditional Financial Institutions in Hong Kong Embrace Cryptocurrency Trading Licenses
Summary:
Since Hong Kong authorities approved cryptocurrency trade, traditional financial institutions are swiftly acquiring their digital asset trading licenses. Chinese broker Tiger Brokers, with 865,500 funded accounts, has enhanced its license to incorporate cryptocurrency trading for professional investors. Furthermore, the company, which manages $18.9 billion of assets, plans to extend its services to retail clients upon receiving approval from the Securities & Futures Commission (SFC). Hong Kong Brokerage Victory Securities and crypto exchange OSL have already received SFC's license, paving way for Bitcoin and Ether trading services for retail investors. These developments highlight the growing acceptance of cryptocurrencies as a new asset class within traditional finance sectors.
In less than a year since Hong Kong authorities gave their go-ahead to cryptocurrency exchanges, traditional finance organisations and brokerages are now avidly procuring licences to trade digital assets. Earlier this year, Chinese equities broker Tiger Brokers updated its Type 1 license from the Hong Kong Securities & Futures Commission (SFC) to incorporate professional investors' cryptocurrency trading. Tiger Brokers' CFO and Director, John Fei Zeng, shared with Cointelegraph that the firm currently oversees 865,500 live accounts, managing assets worth $18.9 billion collectively.
Zeng further detailed, "Tiger Brokers (HK) has elevated its licence capacity to offer virtual assets trading services to our professional investor clientele via an SFC-licensed platform. We will cater to retail clients upon receipt of the SFC's approval." He added by saying that "Hong Kong residents will be able to trade digital assets like Bitcoin and Ethereum along with stocks, futures, options, funds, and ETFs with Tiger Trade."
The brokerage firm is also looking into listing more digital assets, such as altcoins, subject to regulatory approval on a global expansion strategy in licensed markets like Australia, the U.S., Singapore, U.K., Hong Kong, and New Zealand. Zeng maintained that "apart from stocks and options, cryptocurrencies are emerging as a significant asset class. Hence, it's a logical business progression for a broker-dealer to include this new asset class. Besides, the fundamental Web3 technology aligns well with Tiger's fintech foundation."
Last November, Victory Securities, a Hong Kong brokerage firm, also got the SFC's license to provide cryptocurrency trading services to retail investors. The company reported that "both the volume of digital asset transactions and the count of new clients in Q3 this year saw a rise of more than double compared to the previous quarter." The company plans to encourage new clients by offering trading discounts in the future.
Additionally, on November 28, 2023, licensed cryptocurrency exchange OSL collaborated with Interactive Brokers to allow the latter's platform to offer Bitcoin and Ether trading services to retail investors. On February 1, Cointelegraph mentioned that Bybit, a crypto exchange, has applied for a retail trading licence in Hong Kong. Firms dealing with Web3 technologies may need to invest up to $25 million for corporate infrastructure and compliance to attain license approval.
Published At
2/19/2024 11:22:24 PM
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