Futu and Its International Version Moomoo Launch Crypto Trading in Hong Kong and Singapore, Marking a First for Online Brokerages in Both Countries

Futu Securities International Leads Hong Kong's Crypto Trading Revolution

Futu Securities International has made a significant stride in Hong Kong’s financial landscape by becoming the first online brokerage to offer cryptocurrency trading services directly to retail investors.

This development allows Hong Kong residents to engage in Bitcoin and Ethereum transactions on the Futu platform, using either Hong Kong dollars or U.S. dollars.

This milestone follows a recent upgrade of Futu’s securities licence by the Securities and Futures Commission (SFC), which now authorises the firm to deliver virtual asset dealing services to both professional and retail clientele.

The upgrade represents a major step forward in Hong Kong’s quest to solidify its position as a global crypto hub.

Futu's Strategic Incentives to Attract Retail Investors

In a bid to attract retail investors amidst the growing competition in the crypto space, Futu has introduced several promotional strategies.

Futu’s Facebook currently has amassed 57,000 followers.

The company is offering enticing incentives, including the chance to receive shares in high-profile companies such as Alibaba and Nvidia for users engaging in crypto trading on their platform.

Rewards include shares in Alibaba and Nvidia, Bitcoin, and supermarket vouchers, with values reaching up to $1,000.

Furthermore, Futu has eliminated commission fees on cryptocurrency transactions, amplifying the appeal of its services to potential users.

While Futu is not the pioneer in offering crypto trading in Hong Kong, its focus on retail investors sets it apart from its competitors.

Notably, Tiger Brokers, another player in the market, began offering crypto trading services in May but restricted these services to professional investors only.

The SFC defines professional investors as individuals with investment portfolios exceeding HK$8 million or corporate entities with assets over HK$40 million.

Regulatory Advances and Future Prospects for Futu

Futu’s expansion into cryptocurrency trading is part of Hong Kong's broader strategy to enhance its attractiveness as a hub for virtual asset businesses.

The city has recently introduced new crypto policies, including a mandatory licensing regime for cryptocurrency exchanges, aiming to streamline and regulate the burgeoning sector.

Backed by Tencent, Futu is also in the process of obtaining a cryptocurrency exchange licence for its new platform, PantherTrade.

Currently, PantherTrade is among the 11 platforms in Hong Kong that are “deemed to be licensed” for crypto trading, meaning it can operate while awaiting full approval from the SFC.

Investment Moves and Strategic Partnerships

Futu’s investment strategy further highlights its commitment to expanding its financial services portfolio.

Recently, Futu completed a substantial investment of HKD 440 million in Gravitation Fintech HK Limited, the parent company of Airstar Bank.

As a result of this investment, Futu has acquired an indirect 44.11% stake in Airstar Bank, making it the bank's second-largest beneficial owner.

Additionally, Futu has partnered with HashKey Exchange to comply with the SFC's regulations, which mandate that cryptocurrency trading services be offered through partnerships with licensed exchanges.

HashKey Exchange is one of the two licensed exchanges in Hong Kong, further positioning Futu at the forefront of the local crypto trading market.

Moomoo Has Started to Offer Crypto Trading in Singapore

In a parallel development, Moomoo, the international version for overseas investors, has made headlines with its recent achievement of obtaining a Major Payment Institution (MPI) licence from the Monetary Authority of Singapore (MAS).

This licence enables Moomoo to operate as a regulated crypto business in Singapore, marking a significant expansion of its services.

The company received in-principle approval for this licence in December 2023, following its application in May 2021.

Moomoo now offers a comprehensive platform where users can trade cryptocurrencies alongside global stocks, funds, and other financial instruments.

Currently only 6 cryptocurrencies are tradable on the platform.

Incentives and Growth Strategies

To capitalise on the current crypto bull market, Moomoo is offering zero-commission trading to its first 5,000 clients until 30 September 2024.

This move aims to attract new users and enhance the platform's competitive edge.

Moomoo, which initially launched in Singapore in 2021, has evolved from providing low-cost stock trading to offering integrated services for digital payment tokens.

The company also allows users to deposit and withdraw funds in SGD or USD without incurring fees.

Futu’s Expansion: What Hong Kong’s Crypto Approval Means for the Trading Industry

Futu’s approval to offer cryptocurrency trading in Hong Kong, following its previous move in Singapore, positions it as a significant player in the evolving global trading landscape.

This strategic expansion not only bolsters Futu's competitive edge but also highlights its commitment to integrating digital assets into mainstream trading platforms.

By securing regulatory approval in two major financial hubs, Futu is setting a precedent for future-ready trading services, potentially enhancing its market share and attracting a diverse clientele eager to explore cryptocurrency trading.

This dual-market presence highlights a growing trend where traditional trading firms are expanding their portfolios to include digital currencies, reflecting a broader shift towards integrating crypto assets into established financial frameworks.