Two Chinese online brokerages have set out to enter the global crypto trading market. The platforms, Tiger Brokers and Futu, are planning to offer their services only outside the People’s Republic as Beijing is once again cracking down on bitcoin trading in the country.
Major Chinese online brokers dive into crypto trading
The South China Morning Post reported on Tuesday that Beijing-based Tiger Brokers and China’s leading online brokerage Shenzhen-headquartered Futu have revealed plans to begin offering crypto trading services. Nasdaq-listed companies want to compete with established platforms such as Robinhood and Atoro for a growing global market share.
However, both companies will not accept customers from mainland China, as the authorities in their home country recently reiterated the ban on cryptocurrency trading. While the Chinese government is lagging behind crypto exchanges and payment service providers Vow To continue to closely monitor the Chinese giant Crypto mining industry.
The brokers have announced their intention to expand into digital currency trading during the Q1 earnings call, SCMP detailed. According to the publication, young and mobile businessmen living outside the People’s Republic of China will be their main targets. This global market has been growing with rising prices of cryptocurrencies in the last few months. Tiger Brokers CEO Wu Tianhua was quoted as saying during last week’s call:
We have seen that cryptocurrency like bitcoin has become more accepted by mainstream investors since last year and is emerging as an asset class. Tiger’s mission is to make investment more efficient and enjoyable for investors.
Tiger Brokers and Futu to target offshore crypto traders
Tiger Brokers The company’s chief executive insisted, “Chinese is not going to offer such service to citizens.” The brokerage is currently applying for the relevant crypto trading license, Wu Tianhua said, without specifying which regulators are expected to grant authorization for Tiger’s new business effort.
The brokerage, backed by Chinese smartphone giant Xiaomi, reported a net profit of $ 21.1 million from the first quarter of this year. The platform, which facilitates the trading of shares listed on stock exchanges in the United States, Hong Kong, Australia and Singapore, has received deposits from over 375,000 customers.
Futu, Which is backed by Chinese technology group Tencent, is planning its expansion into cryptocurrency trading for the second half of the year. During the company’s earnings conference call on May 19, senior vice president Robin Li Xu said that Futu is applying for digital currency-related licenses in Singapore, Hong Kong and the US. The broker has 790,000 clients and has registered a six-fold increase in net worth. Profit is bringing in $149.5 million, comparing Q1 2021 to Q1 2020.
Do you think that Tiger Brokers and Futu will be able to offer crypto trading services in China in the future? Let us know in the comments section below.
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