Chinese online brokers Tiger Brokers and Futu will add cryptocurrency trading functionality. This was disclosed by platform representatives during investor conference calls in late May, according to SCMP.
Both companies plan to offer digital-asset-related services outside mainland China.
According to Futu vice president Robin Li Xu, the platform is preparing to apply for the corresponding licenses in Singapore, Hong Kong, and the United States. The broker expects to start trading cryptocurrencies in the second half of 2021.
Tiger Brokers is also in the process of obtaining licenses. The company did not specify which jurisdictions its efforts are focused on or when the functionality will appear on the platform.
The brokers said the move is in response to growing demand for new financial instruments. The service will also allow them to compete with Western counterparts, such as Robinhood.
“We have noticed that since last year cryptocurrencies, such as Bitcoin, have become more acceptable to retail investors and have evolved into an asset class. Our mission is to make investing more efficient and enjoyable,” said Wu Tianhua, head of Tiger Brokers [Wu Tianhua].
Both companies are listed on the Nasdaq. Futu is backed by Tencent, while Tiger Brokers is backed by Xiaomi.
Tiger Brokers serves 1.4 million clients, of whom 376,000 hold deposits on the platform. Futu has about 790,000 users, of whom 273,000 hold deposits.
Earlier the Xinhua News Agency criticized Bitcoin and cryptocurrency mining. The authors of the piece pointed to risks for investors and financial stability.
As reported, on May 21, Vice Premier Liu He of the State Council said authorities intend to take measures regarding mining and trading digital assets.
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