financemagnates.com
Tiger Brokers, a Chinese online broker listed on the US stock exchange, is planning to launch cryptocurrency trading services for its customers outside mainland China.
Addressing the first-quarter earnings call, Tiger Brokers’ chief executive, Wu Tianhua, revealed that the move to introduce digital currencies was motivated by the rise in the number of young traders who are very interested in crypto assets.
“We notice cryptocurrencies such as bitcoin have become more acceptable by mainstream investors since last year and are emerging as an asset class. Tiger’s mission is to make investing more efficient and enjoyable for investors,” Tianhua said.
The Beijing-based brokerage further clarified that the crypto trading services will not be available in mainland China due to the government’s tough stance against them. It is already in the process of applying for ‘relevant licenses’ needed for cryptocurrency trading but did not specify the jurisdictions it is targeting.
Backed by tech giant Xiaomi, Tiger Brokers reported an excellent jump in its demand for the past several quarters. Most recently, the broker reported a year-over-year revenue jump of 255.5 percent in the first quarter of the ongoing year and has earned a profit of $21.1 million.
Chinese Brokers Diving into Crypto
But Tiger Brokers is not the only Chinese broker to jump into cryptocurrency trading. Earlier, Futu, another Chinese broker based in Shanghai, revealed similar plans to offer cryptocurrency trading, but for clients outside mainland China. The platform is targeting the United States, Singapore, and Hong Kong and has initiated licensing applications.
The Chinese government’s repeal of crypto became strong recently as the government reiterated the illegality of digital currencies in the country, which was believed to have triggered the heavy correction of the crypto market. However, this time the government is also going after the massive cryptocurrency mining industry in the country.
Meanwhile, Hong Kong is approaching to restrict cryptocurrency trading only to the wealthy investors, according to a proposed framework.