Futu Launches BNB in Hong Kong: A Comeback for Crypto Exchanges Amid Regulatory Challenges

Original | Odaily Planet Daily ( @OdailyChina )

Author | Wenser ( @wenser2010 )

Last night, Futu Niuniu officially launched real-time trading services for BNB aimed at compliant professional investors in Hong Kong.

With this, Futu becomes the first licensed broker in Hong Kong to offer BNB order book trading pairs, expanding its virtual currency trading to include 21 mainstream cryptocurrencies, such as BTC, ETH, SOL, and USDT. According to Futu's official statement, the new BNB trading in Hong Kong relies on its self-built virtual asset platform, PantherTrade, which complies with the standards set by the Hong Kong Securities and Futures Commission (SFC) and seamlessly integrates with Futu's trading system, thus achieving a complete closed loop from compliant listing to instant trading.

Following collective lawsuits in the U.S., business suspensions in Japan, and the expulsion of clients in mainland China, Futu, as an established brokerage platform, is seeking breakthroughs in the crypto trading sector.

Futu's Dilemma: Regulatory Pressure in China, Japan, and the U.S., Limited New User Channels

The launch of BNB trading for compliant investors in Hong Kong may be one of the few "incremental opportunities" available to Futu at this time.

In the past three months, Futu has faced regulatory pressure from the mainland Chinese authorities, the U.S. SEC, and Japan's Financial Services Agency due to issues such as illegal cross-border operations, insider trading, and false disclosures.

Mainland China's Regulatory Crackdown: Fines of 1.85 Billion Yuan, Two-Year Expulsion of Existing Cross-Border Investors

In May this year, the China Securities Regulatory Commission (CSRC), along with the central bank and the Ministry of Public Security, officially released the "Implementation Plan for Comprehensive Rectification of Illegal Cross-Border Securities, Futures, and Fund Operations" (hereinafter referred to as the "Plan"), launching a comprehensive crackdown on illegal cross-border brokers. On the same day, the CSRC announced that it had initiated investigations into Futu, Tiger Brokers, and Changqiao, three leading cross-border internet brokers, proposing to confiscate all illegal gains and impose severe penalties. Futu is expected to be fined 1.85 billion yuan, while Tiger Brokers faces fines exceeding 410 million yuan, with each founder being fined approximately 1.25 million yuan personally.

Additionally, according to the "Plan," all institutions engaged in illegal cross-border operations must maintain a one-way channel for existing investors during the two-year rectification period—only allowing them to sell and withdraw funds, with no permission for any buying, increasing positions, or transferring funds in.

U.S. Regulatory Investigation: Insider Trading Investigation Launched, Market Maker Losses Exceed $70 Million

Affected by previous fines and expulsion requirements from Chinese regulators, Futu's stock price plummeted by over 40% in a single day, with suspected insider traders profiting $100 million by betting on options after receiving advance notice of the news.

As the primary counterparty involved in most suspected insider trading, market maker SIG (Susquehanna International Group) lost over $70 million, leading them to file a lawsuit in the U.S. District Court for the Southern District of New York on June 29, where the judge approved their request to freeze related account funds.

Additionally, investor Yong Hong Tang filed a lawsuit against Futu Holdings founder Li Hua and CFO Chen Yu in the same court on June 26, accusing them of violating the securities fraud and controlling person liability provisions of the U.S. Securities Exchange Act of 1934, seeking damages for investors who purchased Futu shares between May 24, 2023, and May 27, 2026.

Recently, all three defendants in the Futu insider trading case have surfaced, including Hong Kong resident Yang Jingyao (suspected to be the largest single shareholder of Hong Kong-listed company Rongzun International).

Japan's Regulatory Order: Futu's Partial Business Suspension and New Account Opening Halted for 3 Months

On June 19, Japan's Financial Services Agency issued a partial business suspension order to moomoo Securities (Futu Holdings' subsidiary in Japan), requiring it to halt the solicitation and acceptance of new account openings from June 19 to September 18 for a period of three months; a rectification plan must also be developed.

It has been disclosed that moomoo Securities engaged in improper conduct by providing false explanations to customers regarding the applicability of Japan's Individual Savings Account (NISA) system, as well as long-term deficiencies in suspicious transaction checks and reporting, and inadequate cybersecurity measures.

Traditional Brokers Seeking New Breakthroughs: Approval for Virtual Asset Trading Financing Services in Hong Kong, New Crypto Trading Launch

Traditional brokerage firms have frequently faced regulatory crackdowns, prompting them to venture into the crypto sector.

In July 2024, Futu Securities received approval from the Hong Kong SFC to provide virtual asset trading services to qualified investors, including individual investors, officially launching BTC and ETH trading on August 1, becoming the first licensed broker in Hong Kong to offer zero-commission trading for cryptocurrencies.

By August 2025, according to the official Q2 financial report, Futu's crypto asset balance had reached HKD 4 billion, expanding its business to Hong Kong, Singapore, and the U.S.

In November 2025, Futu's international platform Moomoo launched BNB in the U.S. and Singapore markets.

As we enter 2026, while crypto exchanges are launching traditional financial assets such as U.S. stocks, Korean stocks, and Hong Kong stocks, traditional brokers are also moving towards cryptocurrency trading.

June: Approval to Launch Virtual Asset Trading Financing Services in Hong Kong

In June this year, Futu Securities announced that it had received approval from the Hong Kong SFC for the upgrade of its Type 1 securities trading service, which will launch virtual asset trading financing services for qualified clients in Hong Kong. The collateral for this service must be traditional securities, and the credit limit obtained through traditional securities financing cannot be used for cryptocurrency trading, which has now been relaxed to allow use for cryptocurrency trading.

The main differentiating selling points of Futu's launch of BNB real-time trading in Hong Kong are twofold:

First, in terms of customer base, Futu Hong Kong targets a broader retail investor group with relatively low participation thresholds;

Second, regarding the trading system, Futu employs an order book matching system instead of pure quote trading, allowing for more flexible buying and selling methods.

Additionally, regarding the concerns many readers may have about whether Futu Hong Kong supports BNB deposits and withdrawals, current information indicates that it does not support this temporarily, but it may gradually open up in the future, similar to previous cryptocurrencies like BTC, ETH, and SOL.

According to Futu's Q1 earnings call information, its total trading volume in Hong Kong's brokerage business reached HKD 41.5 trillion in the first quarter, a year-on-year increase of 29% and a quarter-on-quarter increase of 4%, with U.S. stock trading volume at HKD 30 trillion. By the end of the first quarter, the company's assets under management reached HKD 17.84 trillion, a year-on-year increase of 28%.

Company executives stated that for the local Hong Kong clientele, the company maintains over 50% market share. In overseas markets, the independent brand moomoo has recorded high year-on-year revenue growth, with five countries including Japan, Canada, Australia, the U.S., and Malaysia seeing revenue growth exceeding 100%. There are over 2 million asset clients, with an average AUM of about $18,000.

Considering the previous disclosure that the proportion of asset clients in mainland China has dropped to 13%, the importance of Hong Kong's cryptocurrency trading business is expected to gradually increase, and this move is also seen as a favorable attempt for traditional brokers to transform, seize the benefits of Hong Kong licenses, and attract younger user groups.

Perhaps, after experiencing regulatory crackdowns, Futu is determined to become a multi-faceted trading platform. Compared to its original business structure that heavily relied on mainland users for cross-border investments, a Robinhood-style model of "crypto and securities coexisting" is clearly more advantageous.

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