Buy Bitcoin using a brokerage app.
At present, some Hong Kong brokerages are planning to provide trading services for virtual assets such as Bitcoin. Securities China reporters learned that Hong Kong brokerages such as Victory Securities, Tiger Brokers, and Interactive Brokers have launched corresponding services, and investors can trade virtual assets such as Bitcoin on brokerage apps.
Some securities firms have said that income related to virtual assets may account for about a quarter of a company's revenue.
On June 12, Hong Kong Victory Securities also announced that its APP can provide virtual currency deposit and withdrawal functions, further expanding the brokerage's service scope and user experience in the virtual currency market.
Several Hong Kong brokerage firms provide Bitcoin trading services
On June 12, 2024, the Hong Kong Securities and Futures Commission held a briefing to explain its regulatory requirements to those who apply for virtual asset trading platform qualifications after June 1. It is reported that on June 1, the transition period of Hong Kong's virtual asset trading platform licensing system officially ended. After this, all virtual asset trading platforms operating in Hong Kong must obtain a license from the Hong Kong Securities and Futures Commission.
Currently, only two virtual asset trading platforms in Hong Kong have obtained licenses. These two platforms are: OSL Digital Securities Co., Ltd. and Hash Blockchain Limited. In addition, there are 11 virtual asset trading platform applicants in Hong Kong who are queuing up to apply for qualifications.
The reporter noticed that virtual assets are recognized in Hong Kong, and some Hong Kong securities firms are also allowed to provide virtual asset trading and consulting services directly to retail investors, such as Bitcoin and Ethereum.
On May 6 this year, Tiger Brokers (Hong Kong) announced the official launch of virtual asset trading services, supporting 18 currencies including Bitcoin and Ethereum, becoming one of the first online brokerages in Hong Kong to support both securities and virtual asset trading through a single platform.
It is reported that Tiger Brokers' virtual asset trading service is currently only open to professional investors. Eligible users can use Tiger Brokers' flagship platform "Tiger Trade" to trade 18 virtual assets such as Bitcoin and Ethereum, as well as global assets such as stocks, options, futures, U.S. Treasuries, and funds in one stop, without having to open and manage multiple accounts at different brokerages and platforms.
In addition, on November 24 last year, Hong Kong Victory Securities stated that it became the first licensed corporation in Hong Kong to be approved by the Securities and Futures Commission to provide virtual asset trading and consulting services to retail investors.
"On the one hand, this demonstrates our determination to integrate virtual assets into the traditional financial system. On the other hand, it allows retail investors to participate in this rapidly growing asset class in a compliant and protected manner. At the same time, it also demonstrates Hong Kong's determination to become an international virtual asset center." Victory Securities said.
Shengli Securities said that it will launch a plan that makes "buying stocks and buying cryptocurrencies equally easy", and customers can enjoy an integrated experience of virtual assets and securities services through its unique trading platform.
Also on November 24 last year, Interactive Brokers Hong Kong obtained a license to trade virtual assets for retail customers in Hong Kong, allowing trading of Bitcoin and Ethereum.
Trading threshold starts from $100
The reporter noticed on the official website of a Hong Kong brokerage that investors need to open a virtual asset account to trade virtual assets such as Bitcoin on the brokerage APP. There are certain steps to open a virtual asset account, including completing the opening of a personal securities account or a company securities account; after the securities account is opened, fill in and sign the following four documents in electronic or paper forms: Additional Agreement for Virtual Asset Trading, Additional Risk Disclosure Statement for Virtual Assets, Risk Tolerance Questionnaire, and Virtual Asset Knowledge and Experience Questionnaire.
It is reported that brokerage firms have set a low entry threshold for virtual asset transactions, starting at $100, so that investors can easily get started with virtual asset transactions. Investors can directly invest in virtual asset spot trading (VA Spot Trading), virtual asset-related virtual asset futures exchange-traded funds ("VA Futures ETF") and private equity funds ("VA funds") through brokerage APPs.
For the transaction fees of virtual assets, different exchanges have slightly different charging standards. Currently, the Hong Kong Securities Regulatory Commission has only approved two virtual asset trading platforms. For OSL Exchange, the fee for Bitcoin (BTC) is BTC0.001unit, and the fee for Ethereum (ETH) is ETH0.01unit. For HashKey Exchange, the fee for Bitcoin (BTC) is 0.0008unit, and the fee for Ethereum (ETH) is ETH0.008unit.
The reporter learned that, at present, in order to attract investors to participate, some Hong Kong brokerage firms are carrying out a series of preferential activities, such as a three-month commission-free promotion for virtual asset accounts.
According to the Hong Kong Wen Wei Po at the end of May this year, a Hong Kong brokerage firm said that the income related to virtual assets can maintain a quarter or even a third of the company's total income. This is mainly because the brokerage firm has the advantage of entering the market earlier, and the investment in the brokerage firm's virtual asset business has been largely recovered and is now profitable.
"After the brokerage firm launched the virtual currency trading service, it mainly attracted two types of customers. The first type is cryptocurrency investors who need to make other investments for their profits after making money from cryptocurrency trading, such as buying stocks. The second type is the brokerage firm's traditional stockholders who will also try to invest in virtual currencies when Hong Kong stocks are sluggish." Wenhui Daily said.
