Hong Kong's crypto market is experiencing a surge of interest from established financial institutions, eager to capitalize on the booming demand for digital assets.
Hong Kong's crypto market is experiencing a surge of interest from established financial institutions, eager to capitalize on the booming demand for digital assets. Less than a year after regulatory approval for crypto exchanges, traditional brokerages like Tiger Brokers and Victory Securities are aggressively pursuing licenses to offer crypto trading services.
Tiger Brokers has already upgraded its Hong Kong license to include crypto trading for professional investors and institutions. Retail investors will soon be able to join the platform once the Securities and Futures Commission (SFC) grants approval. The firm plans to offer Bitcoin and Ethereum alongside traditional assets like stocks and options, with plans to explore altcoin listings subject to regulatory greenlight. Tiger Brokers views crypto as a natural business extension, citing synergy with its existing fintech expertise.
Victory Securities isn't far behind, having secured a retail crypto trading license in November 2023. They've already witnessed significant growth in virtual asset transactions and new customers, prompting them to launch trading discounts to attract even more.
Partnerships are also accelerating the crypto integration. Licensed crypto exchange OSL joined forces with Interactive Brokers to offer Bitcoin and Ethereum trading to retail investors through Interactive Brokers' platform. Additionally, Bybit, another crypto exchange, has submitted a retail trading license application, aiming to join the market.
However, obtaining a license comes at a cost. Web3 firms seeking licenses need to invest up to $25 million in infrastructure and compliance, highlighting the commitment required to navigate the regulatory landscape.
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