Chinese E-Brokerages Unveil Crypto Trading Plans
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Two Chinese online brokerages backed by major tech titans shared plans about expanding into crypto trading in the midst of a domestic crackdown.
Tencent-backed Futu and Xiaomi-backed Tiger Brokers both unveiled crypto trading plans in their latest quarterly earnings call.
Tiger Brokers said it was in the process of applying for relevant licenses for crypto trading without naming any markets.
Futu senior vice president Robin Li Xu said the firm was applying for crypto-related licenses in the U.S., Singapore and Hong Kong.
Since China’s most recent announcement to crack down on crypto, related firms are increasingly shifting operations abroad including miners who are seeking alternatives such as North America.
According to Futu and Tiger Brokers, their crypto offering will only target customers not based in mainland China.
Questions & Answers
Q.Which Chinese online brokerages are planning to offer crypto trading services?
Which Chinese online brokerages are planning to offer crypto trading services?
Tencent-backed Futu and Xiaomi-backed Tiger Brokers are the two Chinese online brokerages that have unveiled plans to expand into crypto trading. They announced these intentions during their most recent quarterly earnings calls to investors.
Q.Where do Futu and Tiger Brokers plan to offer their new crypto trading services?
Where do Futu and Tiger Brokers plan to offer their new crypto trading services?
Futu intends to apply for crypto-related licenses in the U.S., Singapore, and Hong Kong. Tiger Brokers stated it was in the process of applying for relevant licenses for crypto trading, but did not specify any particular markets.
Q.Why are these Chinese brokerages looking to offer crypto trading now, given China's stance on cryptocurrency?
Why are these Chinese brokerages looking to offer crypto trading now, given China's stance on cryptocurrency?
They are making these plans amidst a domestic crackdown on crypto in China, which has led many related firms to shift operations abroad. Both companies state their crypto offering will only target customers not based in mainland China.
Q.Which customers will Futu and Tiger Brokers target with their new crypto trading offerings?
Which customers will Futu and Tiger Brokers target with their new crypto trading offerings?
According to both Futu and Tiger Brokers, their new crypto offering will exclusively target customers who are not based in mainland China. This aligns with a broader trend of crypto firms moving operations abroad due to domestic crackdowns.
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