Interactive Brokers Launches Crypto Trading Services in Hong Kong

  • Licensed crypto exchanges in Hong Kong are allowed to service professionals solely
  • Digital belongings are complicated merchandise which are possible not understood by retail traders, regulator says

A partnership between two digital asset brokerages permits a brand new route for skilled traders in Hong Kong to dabble in cryptoassets.

OSL, a Securities and Futures Fee (SFC)-regulated digital asset platform, has agreed to offer Interactive Brokers a platform to supply digital asset companies to its skilled shoppers, in accordance with an announcement on Thursday. 

In late 2020, OSL grew to become the primary agency to receive permission from Hong Kong’s regulatory authority to offer a digital asset buying and selling platform for establishments. It managed to get licensed after present process vetting necessities. Interactive Brokers’ partnership with the change highlights its weight out there.

“Traders worldwide are rallying to digital asset markets, and the collaboration with OSL comes at a key second within the growth of the regulated digital asset ecosystem in Hong Kong,” David Friesland, head of Asia Pacific at Interactive Brokers, mentioned in an announcement.

In January this yr, the Hong Kong Financial Authority mentioned solely SFC-licensed monetary establishments can be allowed to conduct the enterprise. In a notice, the regulator mentioned digital belongings ought to be thought of complicated merchandise that aren’t more likely to be understood by retail traders. And so, they have to be restricted to professionals.

“Hong Kong has one of many world’s highest concentrations of institutional {and professional} traders, in addition to a transparent regulatory regime round digital belongings,” Wayne Trench, OSL’s chief government, mentioned in an announcement.

Hong Kong was a hotbed for a few of in the present day’s most well-known blockchain and crypto companies together with Crypto.com, BitMEX and Bitfinex. In style stablecoin Tether too was launched there in 2014. However strict laws, together with the rule that restricts companies to skilled traders, led some corporations to leap to different markets.

The SFC not too long ago took aim at non-fungible tokens, warning that if traders “can’t absolutely perceive them and bear the potential losses, they need to not put money into NFTs.” China’s caveats on cryptocurrencies have additionally muddled Hong Kong’s function as a hub for fintech improvements. 

Many crypto exchanges have utilized to Hong Kong’s licensing settlement, however OSL has been the one profitable one up to now.

  • Blockworks


    Shalini is a crypto reporter from Bangalore, India who covers developments out there, regulation, market construction, and recommendation from institutional consultants. Previous to Blockworks, she labored as a markets reporter at Insider and a correspondent at Reuters Information. She holds some bitcoin and ether. Attain her at [email protected]

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