In less than a year since crypto exchanges were approved by regulators in Hong Kong, both traditional financial institutions and brokerages have been eager to obtain digital asset licenses for trading.
One such brokerage, Tiger Brokers, recently upgraded its Type 1 Hong Kong Securities & Futures Commission (SFC) to include crypto trading for professional investors and financial institutions. John Fei Zeng, the CFO and director of Tiger Brokers, revealed that the firm currently has 865,500 funded accounts and manages $18.9 billion in assets.
Tiger Brokers plans to expand its services to retail clients once it receives approval from the SFC. Hong Kong residents will then be able to trade virtual assets like Bitcoin and Ethereum alongside stocks, options, futures, funds, and ETFs through Tiger Trade.
The brokerage is also considering listing additional digital assets, including altcoins, pending regulatory approval. It is also looking to expand internationally in licensed markets such as Australia, the U.S., Singapore, Hong Kong, the U.K., and New Zealand.
Another Hong Kong brokerage, Victory Securities, obtained an SFC license to offer crypto trading services to retail investors. The company reported a significant increase in virtual asset transactions and new customers in the third quarter of this year compared to the previous quarter. To attract new customers, Victory Securities plans to launch various trading discounts in the future.
In addition, licensed Hong Kong crypto exchange OSL partnered with Interactive Brokers to allow retail investors to trade Bitcoin and Ether through its platform. Crypto exchange Bybit has also submitted a retail trading license application in Hong Kong.
However, obtaining a license in Hong Kong requires significant investment in corporate infrastructure and compliance. Web3 firms may need to invest up to $25 million to meet the necessary requirements for license approval.
In an effort to boost liquidity, HashKey Exchange plans to onboard market makers.