Hong Kong’s digital bank Mox ventures into Bitcoin and Ethereum ETFs
Hong Kong-based digital bank Mox has launched a service that allows its customers to trade Bitcoin and Ethereum ETFs. The city of Hong Kong continues to enhance its reputation as a crypto-friendly jurisdiction.
According to the latest report from the South China Morning Post, the bank began offering its ETF services on Monday. This initiative also makes Mox one of the first virtual banks to offer ETF trading directly in the region.
Jayant Bhatia, the CPO of Mox, stated in an interview, “The launch of crypto ETFs is just the start of what Mox, intends to offer in the crypto investing space.” He also mentioned that the bank wants to offer a safer way to invest in this asset class for its customers to diversify their investments.
Mox launched other ETF products in February
The latest ETF services are not the only ones provided by Mox. The bank launched other ETF products through Mox Invest in February. It also offers US crypto futures through Mox Invest.
The bank has also stated its intentions to allow direct crypto purchases on its platform. Even though a tentative date was not announced, Jayant stated that the bank will collaborate with a licensed exchange to make this happen.
Jayant also addressed the volatility risks during the interview:
“We will ensure that the risks are made very transparent to customers, and we would recommend that they have diversified asset classes to manage their investments. I think starting with ETFs is the first step in the right direction.”
Mox began its crypto services right after the market slumped following Bitcoin’s new all-time high in 2024.
Hong Kong’s push to become a crypto hub continues
Hong Kong has been actively working to position itself as a leading crypto hub. In June 2023, the city released a licensing regime for crypto exchanges, which has attracted several firms to make Hong Kong their home.
The Hong Kong Securities and Futures Commission (SFC) announced on June 3 that 11 crypto exchanges have applied for virtual asset trading platforms (VATPs). It is also mandatory for all centralized crypto exchanges to get the SFC license.
According to the details on the SFC website, crypto trading platforms should monitor several factors as part of the city’s regulatory requirements. These include asset custody, KYC processes, AML and CFT practices, prevention of market manipulative activities, risk management, and cybersecurity.
