Traditional Brokerage Companies Rush to Obtain Cryptocurrency Trading Licenses in Hong Kong
Date: 2024-02-20 Author: Dima Zakharov Categories: IN WORLD
Traditional Finance Embraces Crypto
Less than a year after regulators in Hong Kong approved cryptocurrency exchanges, traditional financial institutions and brokerage firms are moving swiftly to secure licenses for trading digital assets.
Tiger Brokers Expands Its Reach
In January, Chinese brokerage firm Tiger Brokers applied to the Securities and Futures Commission (SFC) of Hong Kong to update its Type 1 license, incorporating cryptocurrency trading for professional investors and financial institutions based in Hong Kong. John Fei Zsen, the financial director and director of Tiger Brokers, explained that the firm currently holds 865,500 funded accounts with total managed assets valued at $18.9 billion.
Expanding Offerings
Tiger Brokers (HK) has extended its license to trade virtual assets for professional investor clients through an SFC-licensed virtual asset platform and will accept retail clients after SFC approval. Residents of Hong Kong will be able to trade virtual assets such as Bitcoin and Ethereum alongside stocks, options, futures, funds, and ETFs through Tiger Trade.
Continued Expansion
The firm is evaluating additional digital assets, such as altcoins, for inclusion in its listing, subject to regulatory approval. It aims to expand its licensed markets internationally, including Australia, the United States, Singapore, Hong Kong, the United Kingdom, and New Zealand.
Victory Securities Enters the Fray
Similarly, in November of last year, Hong Kong brokerage firm Victory Securities obtained an SFC license to provide cryptocurrency trading services to retail investors.
Increased Demand and Initiatives
Transaction volume with virtual assets and the number of new clients in the third quarter of this year more than doubled compared to the previous quarter, according to the company. To incentivize new clients to choose compliant and secure virtual asset trading services, they plan to launch a series of trading discounts in the future.
Industry Partnerships
In a similar vein, on November 28, 2023, licensed Hong Kong cryptocurrency exchange OSL entered into a partnership agreement with Interactive Brokers to enable the latter to offer Bitcoin (BTC) and Ethereum (ETH) trading to retail investors. On February 1, it was reported that cryptocurrency exchange Bybit had applied for a license for retail trading in Hong Kong. Web3 companies may need to invest up to $25 million in corporate infrastructure and compliance with regulatory requirements to secure the license approval.
