The digital asset prime brokerage firm said it plans to offer over-the-counter brokerage and crypto derivatives services to professional investors in Hong Kong.
Digital asset prime brokerage FalconX said it is expanding into Hong Kong as institutional demand for crypto assets rises in the region.
The company said in a statement on Thursday that it plans to offer over-the-counter brokerage and cryptocurrency derivatives services to professional investors in Hong Kong, including proprietary trading firms, family offices and fund managers.
“Hong Kong has historically been a hub for innovation in virtual assets and continues to lead the market with a clear focus on Web 3.0,” Matt Long, general manager of FalconX Asia Pacific, said in the statement. “Hong Kong’s advanced regulatory framework for virtual assets and over-the-counter derivatives continues to evolve.”
The expansion in Hong Kong follows FalconX’s expansion to Singapore in February 2023 to tap into the Asia Pacific market.
Unlike the wider crackdown on cryptocurrency trading and mining in neighboring mainland China, Hong Kong launched a welcome package for cryptocurrency companies last year. In June 2023, Hong Kong officially launched a cryptocurrency licensing system for virtual asset trading platforms, allowing licensed exchanges to provide retail trading services. Hong Kong has issued licenses to two platforms - HashKey and OSL.
Many exchanges around the world have applied for such retail trading licenses. The SFC's list of license applicants includes Bybit, OKX, Huobi HK, Crypto.com and Bullish. According to local newspaper South China Morning Post, Binance set up a trading platform called HKVAEX in Hong Kong to apply for a license.
Earlier this week, Hong Kong’s Secretary for Financial Services and the Treasury, Andrew Hui, said the government would work to submit licensing bills for stablecoins and over-the-counter cryptocurrency trading frameworks once consultations make progress.