The Hong Kong broker said eligible clients can finance virtual asset trades with traditional securities as collateral after receiving SFC approval tied to its Type 1 license.
Futu Securities said it has received Hong Kong SFC (securities regulator) approval to upgrade its Type 1 license, allowing it to launch virtual asset trading financing for eligible clients in Hong Kong. The move lets investors use margin credit for crypto trading, something that had previously not been available, with traditional securities serving as collateral. Direct virtual-asset collateral remains difficult under the SFC's February circular because it carries a 100% haircut (a full collateral value reduction) before any revision to capital rules.