A big Hong Kong based online brokerage firm halts their service of Futures contract trading because of regulatory issues in Hong Kong that was issued recently.
Futu Securities is one of the biggest trading brokerages of Asian region. Futu is now closing their services which were related and based on futures contract based trading.
Futures trading is a trading which is totally based upon the prediction of the market. Futures trading is a very risky type of trading.
Recently SEC & CFTC altered Cryptocurrency users regarding Futures Trading and also explained how Cryptocurrency trading in futures based contract systems is highly risky. To know more about this report click here.
Futu services stated that they are halting Futures Trading in response to the regulatory requirements.
Customer service of Futu said ” this halt of Futures Trading will impact many businesses in this Cryptocurrency field including CME Bitcoin futures, which are the earliest Bitcoin futures contracts.
Futu customer service team clearly stated that the services which are based on non- futures trading will continue like Gray-scale Bitcoin Trust and Osprey Bitcoin Trust will be still available on their platform.
In the starting of June 2021, Futu executive made an announcement about their business in Cryptocurrency to expand at a wide level outside and Beijing’s renewed crackdown on Bitcoin and other Cryptocurrencies.
Last month, in May 2021, the Government of Hong Kong reportedly moved a ban on retail trading. Which was a type of halting of Cryptocurrency trading ( buy/sell) for common people.
Related: Hong Kong Ban On Retail Trading
Futu Services are now following the Regulation rules of Hong Kong. Because there are many rules and regulations in the retail ban trading by Hong Kong regulators.
Probably futures trading comes from the Ponzi scheme of Cryptocurrency activities.