Interactive Brokers Granted Crypto Trading License in Hong Kong

Interactive Brokers Hong Kong has obtained a license in Hong Kong to facilitate retail clients’ virtual asset trading, according to a LinkedIn post by Interactive Brokers Asia Pacific Managing Director David Friedland.

The post stated that, at this time, Bitcoin and Ethereum are the platforms used for transacting virtual assets, with further details regarding licensing to be disclosed in the official announcement.

This announcement is made amidst the fervor of a developing cryptocurrency industry in Hong Kong. Crypto-related activities have witnessed a notable surge in the region, as companies are vying to obtain local licenses.

Hashkey became the inaugural cryptocurrency exchange in Hong Kong to obtain a specialized license permitting the sale of crypto assets to retail investors in August of this year.

The Swiss cryptocurrency bank SEBA was granted authorization by the Hong Kong Securities and Futures Commission (SFC) in November, enabling it to provide a range of services about cryptocurrencies to its clientele in the area.

Nevertheless, September also brought about a scandal on the Hong Kong cryptocurrency scene, wherein the unlicensed exchange JPEX purportedly defrauded investors of approximately $165 million.

One month later, Hong Kong regulators issued statements regarding revisions to their crypto policies “in response to the most recent market developments and industry inquiries.”

As per the revised policy, exclusive access to specific digital currency offerings will be restricted to professional investors.

In addition, crypto intermediaries should “evaluate whether clients are informed regarding investments in virtual assets” before processing transactions.

Recent research by the Investor and Financial Education Council (IFEC) of Hong Kong indicates that local virtual asset regulations are known by a mere 47% of retail investors in Hong Kong.