Futu has been approved to launch virtual asset trading financing services for eligible clients in Hong Kong
According to Aastocks, Futu Securities has officially announced the approval of its service upgrade for license No. 1 (Securities Trading) by the Hong Kong Securities and Futures Commission, launching virtual asset trading financing services for eligible clients in Hong Kong. It is understood that the collateral for this service must be traditional securities, and the credit limit obtained by clients through traditional securities financing cannot be used for cryptocurrency trading, which is currently relaxed to be usable for cryptocurrency trading.
As for using virtual assets directly as collateral for "margin trading," although the circular issued by the Hong Kong Securities and Futures Commission in February relaxed the use of virtual assets as collateral, it also mentioned that before the revision of capital regulations, virtual asset collateral will be subject to a 100% deduction according to the Securities and Futures (Financial Resources) Rules, which is expected to pose certain challenges to the industry's capital efficiency in actual operations.
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