Hong Kong brokerage Futu halts crypto futures over regulatory issues

Published at: June 17, 2021

A major Hong Kong-based online brokerage firm has reportedly suspended cryptocurrency futures trading due to regulatory concerns.

Futu Securities, one of the biggest trading brokerages in Asia, has halted support of crypto futures contracts and trading services in response to regulatory requirements, Chinese financial publication Sina Finance reports Thursday.

The platform’s customer service reportedly stated that the suspension will affect major contracts including CME Bitcoin futures, one of the world’s earliest Bitcoin (BTC) futures contracts.

The customer service team noted that non-futures crypto products like Grayscale Bitcoin Trust and the Osprey Bitcoin Trust will be still available on Futu.

Futu did not immediately respond to Cointelegraph’s request for comment.

Related: Huobi reportedly suspends futures trading 'temporarily' in some countries

Founded in 2012, Futu Securities is a Nasdaq-listed investment company backed by Chinese internet mogul Tencent. The brokerage’s operator Future Holdings provides wealth management services in countries like China, Hong Kong and the United States. The company’s founder and CEO Leaf Hua Li is a former Tencent employee.

In early June, Futu executives announced the company’s plans to expand cryptocurrency services outside China amid Beijing’s renewed crackdown on Bitcoin (BTC) and other cryptocurrencies. 

Huobi, one of the largest cryptocurrency exchanges in the world, yesterday limited crypto derivatives services for new and existing users over concerns about China’s regulatory crackdown. Last month, Hong Kong regulators reportedly moved to ban retail trading in Hong Kong following long-time speculation about a likely prohibition.

Tags
Bitcoin
Regulation
Trading
Hong Kong
Cryptocurrencies
Law
Futures
Tencent
Related Posts
Hong Kong regulators set to ban retail Bitcoin trading
Hong Kong regulators have moved to ban retail trading in Hong Kong after months of intense speculation about a likely prohibition. According to a report by Reuters on Friday, the Financial Services and the Treasury Bureau of Hong Kong has released the results of its consultation on a possible retail crypto trading ban, which began back in November 2020. As part of its conclusions, Hong Kong’s FSTB called for a comprehensive licensing regime for crypto exchanges while restricting trading only to qualified investors. Per Hong Kong law, only individuals with portfolios worth 8 million Hong Kong dollars (about $1 million) …
Bitcoin / May 21, 2021
Bithumb Hong Kong subsidiaries reportedly face civil suit from Thai partner
Bithumb’s Hong Kong affiliates are reportedly facing a civil suit for breach of contract. According to a Tuesday report by the Korea Times, the suit is being initiated by a former Bithumb partner in Thailand, which is accusing the South Korean-headquartered exchange of unilaterally halting its business in Thailand and causing major losses. The Thai firm — which remains unnamed — is reportedly preparing to file a lawsuit against Bithumb’s Hong Kong subsidiaries, including Bithumb Global Holdings and GBEX, as well as top company executives in July. According to the plaintiff firm, Bithumb’s Hong Kong-based entities were allegedly involved in …
Bitcoin / July 6, 2021
Cryptocurrency: The future of futures?
Many traders entering cryptocurrency markets from traditional finance may look to derivatives as vehicles for price speculation and hedging. There are plenty of choices when it comes to exchanges and instruments; however, traders should consider a few key differences between crypto futures and traditional futures before dipping a toe into this rapidly growing market. Related: 3 things every crypto trader should know about derivatives exchanges Different instruments Traders entering cryptocurrency from the traditional markets will be accustomed to futures contracts with a fixed expiration date. Although fixed expiration contracts can be found in cryptocurrency markets, a significant proportion of crypto …
Technology / June 26, 2021
Indonesia considers capital gains tax on cryptocurrency trades
Neilmaldrin Noor, a spokesperson for the Indonesian Directorate General of Taxes, said that the authority is considering a tax scheme for capital gains generated from cryptocurrency trades, Reuters reported on Tuesday. “It is important to know that if there is a profit or capital gain generated from a transaction, the profit is an object of income tax,” the official stated. Noor said that Indonesian taxpayers who receive capital gain from crypto trades would have to pay the tax and report it to the government. The official noted that the new crypto tax scheme for capital gains has not been implemented …
Bitcoin / May 11, 2021
Report: Barely Any Hong Kong Crypto Funds Being Approved for Licenses
One year after launching a trailblazing licensing scheme for cryptocurrency fund managers, Hong Kong’s securities regulator has issued few and far between. According to a Reuters report on Nov. 5, the licenses introduced by Hong Kong’s Securities and Futures Commission (SFC) in October 2018 have apparently led to few approvals, with reporters succeeding to independently identify just one licensee. Crypto funds said to lack experience and support While confirming the numbers remains difficult in light of the SFC’s policy of discretion — it declined Reuters’ request for comment and does not publicly announce license approvals — industry experts have indicated …
Bitcoin / Nov. 5, 2019