According to the latest reports, Futu has made an alarming announcement for its users. Futu is a cryptocurrency exchange that is based in the hub of cryptocurrencies, Hong Kong. The exchange has announced that it has halted/suspended a particular trading option for the users.
The exchange has revealed that the futures trading option for cryptocurrencies has been halted by the exchange until further notice. The exchange has revealed that it has taken this action due to the regulatory concerns raised by the regulators in Hong Kong.
At present, Futu Securities holds the title for being one of the largest cryptocurrency trading exchanges in Asia. The exchange has reportedly halted its trading for crypto futures trading and contract services. The services have been halted for an indefinite amount of time due to concerns over regulatory requirements.
The announcement around the halting of the service was made by the exchange on Thursday, June 17, 2021. Sina Finance was the first publication firm that covered the news before any other reporting firm.
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The customer service at Futu Securities also provided more information around the suspension of the service. The representatives have confirmed that the halting of the service would also impact other major contracts. One of the major and the earliest futures contracts for Bitcoin (BTC) in the entire world, CME Bitcoin Futures would also be impacted by this.
Apart from the futures contracts, all other products would be accessible and will be operating as normal. Some of the major products currently available at Futu Securities include Osprey Bitcoin Trust and Grayscale Bitcoin Trust.
When approached for comment, the representatives from Futu Securities did not make any statement initially.
Futu Securities is one of the oldest cryptocurrency trading brokerages in the entire world. It was founded back in 2012 and currently exists as a publicly listed company. At present, Futu Securities is listed on the Nasdaq stock exchange.
Futu Securities is reportedly backed by Tencent, which is a Chinese internet mogul. The Future Holdings service provided by Futu Securities is responsible for providing wealth management services in different countries.
At present, Futu Securities provides wealth management services in the United States, Hong Kong, and China. Even the chief executive officer and founder of Futu Securities, Leaf Hua Li used to be a worker at Tencent in the past.
It was just the beginning of June 2021 when Futu Securities had made an announcement in regards to the expansion of its services. The company had announced that it now wants to explore outside China and provide its services in more regions.
Futu Securities executives reportedly made this decision due to the recent crackdown the regulatory authorities had started doing on cryptocurrencies including Bitcoin (BTC).