Futu Securities Suspends Crypto Futures Over Stringent Regulations

Futu Securities Suspends Crypto Futures Over Stringent Regulations

A notable online brokerage company; Futu Securities, situated in Hong Kong has temporarily stopped futures trade because of supervisory laws. Nevertheless, the digital currency investment product; Grayscale’ Bitcoin Trust can still be obtained in the firm.

A finance journal based in China reported that the firm which is amongst the top in the industry across Asia has withdrawn its derivatives services and market operations in reaction to current regulatory standards. The client service department’s forum said the temporary halt will impact on their outstanding contracts. The client service group however reiterated that non- futures crypto assets will still be accessible on Futu platform.

Futu Securities which was established in 2012 has the support of Tencent; a Chinese multinational technology conglomerate holding company. Futu’s creator who also doubles as its chief executive officer; Leaf Hua Li previously worked with Tencent.

In the beginning of this month, officials of Futu made public its proposed plan to extend operations to other regions outside China. This came at the time when China clampdown on Bitcoin and altcoins were at its zenith. Huobi, a renowned cryptocurrency global trade company, on Wednesday said that they had reduced their derivatives transactions for both their new and old clients. This is because of the recent crypto prohibitive rules in China. In May, Hong Kong authorities adopted the new law that prohibited crypto trading. This is in line with a long time anticipation of crypto ban in the country.



Disclaimer

The article posted herein is published by members of this site. Any information you find on this article is base on the opinion and view of the publisher. You are at liberty to accept or reject this article and act base on your own perspective of the platform. You are encouraged to share your own opinion or views about the platform with us via the comments box below so as to further improve this article.

Team Reviewparking is no third party and we can't handle any queries whatsoever.

Get involved!

0 Comments

No comments yet