The Securities and Futures Commission of Hong Kong (SFC) has granted the Hong Kong arm of global firm Interactive Brokers a license to trade virtual assets.
The announcement was made on LinkedIn by David Friedland, Interactive Brokers' Managing Director for Asia Pacific.
The license allows Interactive Brokers to offer Bitcoin and Ethereum trading to clients, Coincu said.
The company's expansion goals are tied to Hong Kong's evolving crypto landscape as the region becomes a thriving center of global cryptocurrency activity. Many companies are seeking licenses in Hong Kong, and the number has grown significantly in recent months, demonstrating the region's ever-increasing importance in the global crypto space.
The first cryptocurrency exchange to receive a license to trade digital assets for retail investors was Hashkey, which offers new investment opportunities for its users. This happened in August 2023.
Also in November, Swiss cryptobank SEBA received a license from the Securities and Futures Commission of Hong Kong, after which it provided cryptocurrency services to its clients from the region.
However, in September, Hong Kong saw a decline in trader activity due to concerns following the JPEX exchange scandal, as the company was operating without an SFC license. The scandal arose after investors lost nearly $165 million, with the exchange's management being blamed.
The SFC has since increased its scrutiny of the industry and updated its policy on cryptocurrency services. The range of individual cryptocurrency trading options for professional investors has been restricted, and the level of assessment of clients' knowledge before engaging in digital asset investment activities has been strengthened.
The Hong Kong Investor and Financial Education Council conducted a survey and assessed the level of education and experience of retail investors. It found that only 47% of investors were aware of the rules for trading digital assets. This level indicates the need to expand educational programs and promote greater awareness in the cryptocurrency trading sector.
Interactive Brokers' licensing achievement contributes to Hong Kong's image as a dynamic and growing center of cryptocurrency innovation.
Interactive Brokers is committed to providing only high-quality, licensed services to its clients and has recently upgraded its Client Portal Order Ticket. The Client Portal now supports trailing stop and trailing stop limit orders.
