Interactive Brokers Hong Kong Secures Approval for Virtual Asset Trading by Retail Clients
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Modified on: Sat, 25 Nov, 2023 at 2:08 AM
Interactive Brokers Hong Kong has been granted a license for virtual asset trading by retail clients in Hong Kong, marking a significant development in the region's expanding crypto industry. The brokerage firm's managing director for Asia Pacific, David Friedland, announced on LinkedIn that Bitcoin (BTC) and Ethereum (ETH) trading is permitted, with an official announcement expected soon. The move follows a trend of increased crypto-related activities in Hong Kong, with companies actively seeking local licensing, and underscores the growing acceptance of digital assets in the region.
Interactive Brokers Hong Kong has received approval for virtual asset trading by retail clients in Hong Kong, as revealed in a recent announcement by the brokerage firm's managing director for Asia Pacific, David Friedland. The approval covers trading in Bitcoin (BTC) and Ethereum (ETH), with an official announcement imminent.
This development reflects the growing acceptance and expansion of the crypto industry in Hong Kong. The region has become a notable hub for crypto-related activities, with companies actively seeking local licensing. In August, Hashkey became the first crypto exchange in Hong Kong to receive a license to offer crypto assets to retail investors. Following suit, Swiss crypto bank SEBA secured a license from the Hong Kong Securities and Futures Commission (SFC) in November, enabling it to provide various crypto-related services to clients in the region.
The approval of Interactive Brokers Hong Kong for virtual asset trading comes at a time when the crypto industry is gaining traction in the region. However, it also highlights the need for a cautious approach, as witnessed in September when the Hong Kong crypto scene faced a scandal involving the alleged scam by unlicensed crypto exchange JPEX, resulting in the loss of nearly $165 million for investors.
In response to evolving market developments and industry inquiries, the SFC updated its crypto policies in October, stipulating that certain digital currency offerings would only be available to professional investors. Additionally, crypto intermediaries were directed to assess clients' knowledge of investing in virtual assets before handling transactions.
Despite the burgeoning interest in crypto, a recent survey by the Investor and Financial Education Council of Hong Kong revealed that only 47% of retail investors in the region are aware of local virtual asset regulations. This underscores the importance of continued education and awareness initiatives as Hong Kong's financial landscape embraces the evolving dynamics of digital assets.
(SAVANNAH FORTIS, COINTELEGRAPH, 2023)
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