China Exchanges Activities Rising Again?

With China's crypto ban continue to spread some Chinese firms have already begun its adjustments to the new ban by finding loop holes. For instance FUTU and Tiger Brokers where they are based in China are trying to obtain Singapore and USA licensees to trade crypto in those specific countries. This works in the exchange's favor because majority of their customers are in China. So with many Chinese still potentially wanting to trade crypto what better way to serve its clients than to setup shop that is legal for trading crypto and continue on with business?

One note to add is both FUTU and Tiger Brokers combined have barely 1 million customers so a small drop in the bucket. However their client growth has more than double for each of the exchanges respectively since last year. I would easily predict more clients will join in the coming days.

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Fierce Competition to Robinhood

What is also interesting is that FUTU and Tiger Brokers are mainly focused on trading stocks in the Singapore and USA markets. The age of trading in the markets is transformed with the likes of Robinhood where derivatives out pace that of individual shares. The risks investors/speculators today make versus even just 10 years ago has transformed and partly thanks to how Robinhood has developed into a platform that allows many individuals in today's time to be interested in investing in the stock market.

Robinhood when first launched in 2014 it had about 350k daily users. As of middle of 2020 it has spawn up to 20 million users. With access to trading stocks, options, and some major cryptos on its platform. A model that both FUTU and Tiger Broker could follow and compete. (Both FUTU and Tiger Broker are currently in similar users as when Robinhood first started in 2014.)

With FUTU and Tiger Brokers looking towards competing with Robinhood it will be interesting to see how crypto trading will do in this who mix of today's world investing. I for one support such competition as it will bring out the best in all of each company trying to earn customer's loyalty. Furthermore gains from either stock market or crypto market can intertwine and proceeds lift up both markets. Such integration in assets has not fully be visualized but I would think it will benefit both markets as a whole.

Where stock market has a long established liquidity of assets while crypto has the potential for large percentage of returns will make for a attractive investments. For exchanges to have the option to invest in both markets will allow liquidity to flow easier between them and make crypto markets be much more liquid. Price stability will likely come with this as there are more money to support the crypto space with the allure of high yielding gains when vested in them.

None of this is cryptocurrency investment advice. This is for entertainment purposes only. Thanks for reading.