Hong Kong brokerage Futu halts crypto futures over regulatory issues

Regulation

A major Hong Kong-based online brokerage firm has reportedly suspended cryptocurrency futures trading due to regulatory concerns.

Futu Securities, one of the biggest trading brokerages in Asia, has halted support of crypto futures contracts and trading services in response to regulatory requirements, Chinese financial publication Sina Finance reports Thursday.

The platform’s customer service reportedly stated that the suspension will affect major contracts including CME Bitcoin futures, one of the world’s earliest Bitcoin (BTC) futures contracts.

The customer service team noted that non-futures crypto products like Grayscale Bitcoin Trust and the Osprey Bitcoin Trust will be still available on Futu.

Futu did not immediately respond to Cointelegraph’s request for comment.

Related: Huobi reportedly suspends futures trading ‘temporarily’ in some countries

Founded in 2012, Futu Securities is a Nasdaq-listed investment company backed by Chinese internet mogul Tencent. The brokerage’s operator Future Holdings provides wealth management services in countries like China, Hong Kong and the United States. The company’s founder and CEO Leaf Hua Li is a former Tencent employee.

In early June, Futu executives announced the company’s plans to expand cryptocurrency services outside China amid Beijing’s renewed crackdown on Bitcoin (BTC) and other cryptocurrencies. 

Huobi, one of the largest cryptocurrency exchanges in the world, yesterday limited crypto derivatives services for new and existing users over concerns about China’s regulatory crackdown. Last month, Hong Kong regulators reportedly moved to ban retail trading in Hong Kong following long-time speculation about a likely prohibition.

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