Mox to offer crypto trading as it enters the crypto financial services market

Bhatia did not say when crypto trading will be available on Mox, but said the bank will team with a licensed exchange to offer the service.

Hong Kong virtual bank Mox is set to offer crypto trading services through a partnership with a licensed exchange, Mox executives said on Monday.

The move comes as Hong Kong’s retail crypto trading scene remains nascent, with only two local exchanges – HashKey and OSL – currently licensed to offer the service. So far, they have only offered bitcoin and ether trading for retail.

Operators without a virtual asset trading platform licence are required to use a licensed exchange for crypto trading, according to the city’s anti-money laundering law.

Mox did not specify which exchange it will be partnering with, but said the service will be available on the Mox app later this year.

“We will integrate the licensed exchange’s services into the Mox platform, so customers can seamlessly access crypto trading without having to leave the Mox app,” said Samir Bhatia, Mox’s chief digital officer.

“We will also handle the customer onboarding and servicing for crypto trading, making it a convenient and fully digital experience.”

Hong Kong’s Securities and Futures Commission began accepting applications for virtual asset trading platform licences in March last year, following the government’s legalisation of crypto trading for retail investors.

Retail investors can now trade cryptocurrencies through any traditional trading platform, as long as the exchange has applied for an SFC licence to operate a virtual asset trading platform.

However, some banks have opted to launch their own crypto services rather than partnering with an exchange. For example, HSBC announced plans in June to launch a fully integrated crypto trading platform for its wealth clients in Hong Kong.

Mox, on the other hand, is seeking to differentiate itself on price, highlighting its low overhead as a completely virtual bank.

For Hong Kong-listed ETFs, Mox is charging 0.12 per cent of the transaction volume, with a minimum of HK$30 (US$3.84). For US-listed ETFs, the bank will charge 0.01 per cent per share, with a minimum of US$5.

“This is very competitive and is actually the cheapest among banks in Hong Kong,” said Henry Lau, Mox’s head of investment.

“We are offering ETF trading at nearly half the price of what traditional Hong Kong banks offer.”

Mox’s entry into the crypto financial services market comes as cryptocurrencies have hit a rough patch after a high-flying first half of the year.

Months after reaching a record US$73,738 in March, according to CoinGecko data, the price of bitcoin fell by as much as 16 per cent on Monday amid economic uncertainty, as investors sold off equities and other assets.

The recent declines are some of the biggest seen since the 2022 collapse of the crypto exchange FTX. Bitcoin briefly traded below US$50,000 on Monday afternoon, though it clawed its way back up past US$52,000 by the evening.

“There are obviously volatility risks which customers need to understand,” said Bhatia.

“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.”

Later in the year, Mox also plans to launch a “core portfolio” solution that will bring professional-level trading features to retail investors, the company said.

The product will be tailored to a customer’s profile and risk tolerance, and will automatically adjust the customer’s portfolio based on their investment goals.

“Even with crypto’s wild price swings, Hongkongers are savvy investors who fundamentally need to look at investing tools that give them optionalities, whether it’s direct equities, ETFs, gold, funds, and now in crypto,” said Bhatia.

“About 28 per cent of Mox customers are already invested in crypto, and 18 per cent of those customers are active crypto traders, so we fundamentally believe that crypto investing is here to stay, and our objective is to ensure that we offer it in a secure manner.”

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