According to a report, a large number of Hong Kong based cryptocurrency traders are turning to US based Bitcoin futures markets. This shift awy has been spurred by a perception that the American futures markets receive greater regulatory oversight than the unregulated cryptocurrency exchanges in Hong Kong.
The report has been made by the cjairman of the Hong Kong Stockborkers Association Gary Cheung. He told the South China Morning Post that the local futures brokers have reported an increase in trading activit on the American futures markets.
He said: “There are two types of Hong Kong investors who like to trade US bitcoin futures. There are bitcoin miners and other investors who trade bitcoin and want to use the futures products to hedge. The others are normal futures investors who purely want to take profit created by speculative futures trading.”
Also the CEO of TD Ameritrade, Gary Leung told that, ““We have received a lot of inquiries about bitcoin futures since we started operating in Hong Kong last October when the prices were surging.”
About the lack of regulatory oversight in Hong Kong, Benny Mau from China Securities International Finance Holding outlined the basic concern of Hong-Kong based traders. He said: “Bitcoin and other digital currencies are basically not regulated in Hong Kong because they are traded like commodities. If the digital currency platforms have a problem or are hacked, the investors may suffer losses because the regulators might not do anything for them. This has discouraged many Hong Kong investors from trading digital currencies in Hong Kong.”