Investments

Futu plans to launch Crypto Trading in Hong Kong and Singapore

The Tencent-backed Futu is reportedly planning on applying for ‘digital currency-related licenses’ in the US, Singapore and Hong Kong, senior vice president Robin Li Xu told the media during the brokerage's first quarter earnings call.

However, crypto trading will not be offered to its mainland clients, reported Finews Asia in an article.

“What we know for sure is that we will not offer digital currency trading services to mainland China users,” said Xu.

China recently reiterated its stance on cryptocurrency and related products and services in a joint notice  signed by the country's banking and internet industry associations, saying virtual currencies should not and cannot be used in the market because they’re not real currencies.

Explosive Growth

The platform saw its fifth straight quarter of triple-digit growth in the first quarter of the year, with total revenues increasing 349.4% year-on-year to USD283.6 million. The number of Futu users globally reached 14 million, with Q1 trading volume soaring to USD289 billion.

Futu added 273,000 net paying clients during this period, with more than 70% of the increase coming from Hong Kong, Singapore and other overseas markets.

Southeast Asia Ambitions

Earlier this year, Futu opened its regional headquarters in Singapore, where it has rolled out its Gen Z-focused investment platform ‘moomoo’. The platform said it has growth ambitions in the region, and sees the republic as a ‘bridge’ to the rest of Southeast Asia.

Leaf Hua Li, Founder, Chairman and CEO, Futu, and Chairman of the Technology Committee, said: “We are encouraged by what we have achieved in Singapore so far and are confident that Singapore and the broader Southeast Asian market offers a huge runway for growth.”