Chinese trading apps look for offshore retail cryptocurrency clients
08:42, 1 June 2021
Two Chinese stock-trading apps are looking to enter the global cryptocurrency markets with offshore licences that will enable them offer digital currency trading services to retail clients, CNBC reported.
During earnings calls last month, Futu and Tiger Brokers said they are applying for licences in Singapore and the US that would enable local retail clients to trade cryptos.
While Bitcoin saw its price reverse during May due to a number of factors, including moves by Chinese authorities to limit crypto use onshore in China for financial stability and energy consumption reasons, the two trading platforms are looking to capitalise on global retail investor appetite for digital currency trading.
March launch
In May Chinese regulators tightened restrictions related to local financial institutions and payment companies offering services to cryptos, saying that “virtual currencies are not supported by any real value”. Bitcoin (BTC) went up to $37,300 on Tuesday morning (06:00 UTC) but it is still 42% under the all-time high level it reached in mid-April.
Futu announced on Tuesday that it has over 100,000 paying clients in Singapore, despite only launching in the city state in March offering capital market products. It is now seeking to expand into cryptocurrency trading.
Futu was granted an operating licence by the Monetary Authority of Singapore in October last year. Tencent holds a 23% stake in the company.
Tiger said it had doubled its number of customers in the first quarter of 2021, compared with 12 months earlier, to reach 376,000.