The Hong Kong Securities and Futures Commission (SFC) has recently updated its list of virtual asset trading platform (VATP) applicants, revealing that six companies are currently in the process of seeking regulatory approval. Among them, PantherTrade (Hong Kong) Limited, a wholly owned subsidiary of Futu Holdings (FUTU, NASDAQ), has officially joined the race for a virtual asset service provider (VASP) license.
This move marks a significant step in Futu’s broader strategy to expand into the Web3 and digital asset space, reinforcing growing industry speculation that traditional financial platforms are increasingly positioning themselves at the forefront of blockchain-enabled finance.
PantherTrade’s Leadership Tied to Huobi and JD Securities
While PantherTrade submitted its formal application in November 2023, records show it had already initiated the VASP licensing process back in October. What makes this development particularly noteworthy is the background of its senior leadership team.
On September 14, 2023, Chan Chi Wu was appointed as a director of PantherTrade. He previously served as the Investment Director at Huobi Asset Management (Hong Kong) Limited — a key player in Asia’s crypto ecosystem. This appointment signals PantherTrade’s intent to leverage deep industry expertise in digital assets.
Another director, Hung Yik Man, joined the company earlier in the year. The first named director at incorporation on March 7, 2023, was Fong Hang Chi, who held a senior role at JD Securities Limited from 2019 to 2020. These appointments suggest a strategic alignment with fintech veterans experienced in both traditional finance and emerging blockchain markets.
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Behind PantherTrade: Tencent-Backed Futu Dominates Digital Brokerage
PantherTrade operates under Futu Holdings, the parent company behind the popular trading app moomoo and its Chinese counterpart Futu NiuNiu. As of the end of 2022, Futu reported 19.58 million registered users, with 3.23 million funded accounts and 1.487 million asset-holding clients — solidifying its position as a dominant force in digital brokerage services across Hong Kong, the U.S., and Singapore.
While Futu has built its reputation on stock trading — offering access to港股 (Hong Kong stocks), 美股 (U.S. stocks), and A-shares — its latest move into virtual assets reflects a calculated pivot toward Web3 innovation.
In contrast, Tiger Brokers (TIGR, NASDAQ), though also expanding globally, lags behind in user scale. As of 2022, Tiger reported over 2 million registered users worldwide, with 782,000 funded accounts.
Interestingly, Tencent Mobility Limited holds a minor stake (0.44%) in Futu according to corporate filings. While this is down from earlier reports suggesting Tencent once held up to 30.3% in 2020, the historical connection underscores Futu’s strong ties to one of China’s largest tech conglomerates — adding credibility and potential strategic support for its Web3 ambitions.
Futu’s Early Steps Into Crypto: From Bitcoin Hints to Service Restrictions
Futu’s interest in cryptocurrency isn’t new. As early as April 2021, CEO Li Hua responded to user inquiries on the Futu NiuNiu platform about whether Bitcoin trading would be available. He stated:
“It’s highly likely for Hong Kong and overseas customers — but probably not for mainland users.”
This comment sparked market speculation about Futu’s crypto roadmap. However, by June 2021, both Futu and Tiger Brokers confirmed they had removed CME Bitcoin futures data and trading functionality from their latest app versions.
Later that year, in September, Futu announced it would halt new positions on GBTC and EHTE — ETF-like products tied to Bitcoin and Ethereum — effective October 1, citing compliance with SFC regulations.
These moves reflected a cautious approach amid evolving regulatory scrutiny. But now, with clearer guidelines from Hong Kong’s SFC on licensed crypto trading platforms, Futu appears ready to re-enter the space — this time through a compliant, regulated channel via PantherTrade.
Tiger Brokers’ Parallel Push Into Digital Assets
Futu isn’t alone in its Web3 ambitions. Tiger Brokers is also making strides toward integrating digital assets into its ecosystem.
On April 25, Tiger International’s Hong Kong arm launched a cash management service and revealed plans to apply for a virtual asset trading license in Hong Kong. The company confirmed it was in discussions with relevant partners regarding the application process.
By October 17, Nikkei Asia reported that two crypto platforms — Yax and PantherTrade — were actively seeking VASP licenses to serve retail investors under SFC oversight.
Notably, Yax is a platform incubated by former Tiger Brokers employees and reportedly backed by Xiaomi, the smartphone giant. Insiders suggest Tiger may offer cryptocurrency services through its Hong Kong brokerage arm, creating a bridge between traditional equities and digital assets for its existing client base.
Both PantherTrade and Yax are currently undergoing third-party assessments — a mandatory step before the SFC formally accepts their applications.
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FAQ: Understanding the Shift Toward Regulated Crypto Platforms
Q: What is a VASP license in Hong Kong?
A: A Virtual Asset Service Provider (VASP) license, issued by the SFC, allows companies to legally operate crypto trading platforms for retail investors in Hong Kong. It requires strict compliance with anti-money laundering (AML), cybersecurity, and investor protection standards.
Q: Why are stock brokers like Futu entering crypto?
A: With growing demand for digital assets and clearer regulations in Asia, traditional brokers see an opportunity to diversify offerings. By integrating crypto into their existing platforms, they can retain users and capture new revenue streams within the Web3 economy.
Q: Is PantherTrade related to moomoo or Futu NiuNiu?
A: PantherTrade is a wholly owned subsidiary of Futu Holdings, meaning it operates under the same corporate umbrella as moomoo and Futu NiuNiu. While currently separate, future integration with these platforms is possible once licensed.
Q: Can mainland Chinese users trade crypto through these platforms?
A: Likely not. Due to China’s strict crypto regulations, services will likely be restricted to international and Hong Kong-based clients only — consistent with previous statements from Futu’s leadership.
Q: What does this mean for investors?
A: Licensed platforms offer greater transparency, asset custody safeguards, and regulatory oversight — reducing risks associated with unregulated exchanges. This trend could increase institutional and retail confidence in crypto investing.
Q: When might PantherTrade launch its services?
A: There’s no official timeline yet. The licensing process can take several months, including third-party audits and SFC reviews. Launch is expected no earlier than mid-2025 if all requirements are met.
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Final Outlook: The Convergence of Traditional Finance and Web3
The entry of firms like PantherTrade and Yax into Hong Kong’s regulated crypto landscape signals a pivotal shift: the convergence of traditional brokerage infrastructure with blockchain-based financial services.
With strong backing from established players like Futu and indirect support from tech giants like Tencent and Xiaomi, these ventures are well-positioned to deliver secure, compliant, and user-friendly crypto trading experiences.
As Hong Kong continues to position itself as a global Web3 hub under supportive government policies, expect more traditional financial institutions to follow suit — blending equity trading with digital assets under one roof.
For investors and traders alike, this evolution promises greater accessibility, enhanced security, and new opportunities at the intersection of finance and technology.
Note: All information provided is for educational and informational purposes only and does not constitute financial or investment advice. Readers should conduct independent research before making any decisions.