Hello and welcome to this week's edition of Overbit News; this post will focus on cryptocurrency's global spread. The first piece will look at two Chinese rivals to stock trading software Robinhood that are turning to cryptocurrency to compete worldwide.
MooMoo (Invested by Tencent Futu) and Tiger Brokers (Invested by XiaoMi) said last month during earnings calls that they are looking for licenses in Singapore and the United States to allow local consumers to trade digital currencies.
The decision comes as cryptocurrencies such as Bitcoin have re-entered the spotlight in recent months, and Chinese regulators have strengthened their efforts to restrict market speculation. Authorities have issued increased cautions against digital currency trading in recent weeks, as well as a crackdown on Bitcoin mining — an energy-intensive computational process that allows players to earn Bitcoin.
However, demand for cryptocurrencies is high in the financial trading sector, as Bitcoin's price rose to record levels above $60,000 before plummeting abruptly to below $35,000. Robinhood, which launched Bitcoin and Ethereum trading in the United States in early 2018, has attracted 3 million consumers per month to its crypto business this year.
Both Futu and Tiger Brokers were primarily founded by Chinese workers of large technology companies such as Alibaba and Baidu. Because these corporations are listed in the United States, their employees are interested in trading equities in other countries.
Both corporations, though, are increasingly focused on markets outside of mainland China. Beijing carefully regulates capital flows out of the mainland, in addition to effectively prohibiting yuan-Bitcoin trades. Futu has 100,000 paying subscribers in Singapore in less than three months after opening there in early March, according to Chen. According to him, around one-fourth of new paying clients in the first quarter came from Singapore and the United States.
As businesses seek to compete worldwide, we look to Miami, which is hosting the largest-ever cryptocurrency conference this week, as evidence that what was once derided as a passing craze is now mainstream.
The conference, which takes place from June 3 to June 5 at the Mana Convention Centre in Miami's Wynwood neighbourhood, attracts a slew of notable attendees, including Twitter CEO Jack Dorsey and Miami Mayor Francis Suarez, who has stated his desire to turn the city into a crypto hub.
The conference was originally slated to take place in Los Angeles from April 30 to May 1, but it was moved to Miami due to worries over California's harsh COVID-19 laws. The date was also pushed out to provide time for the virus's second wave to pass and vaccinations to be distributed. The conference organizers anticipate up to 50,000 people.
However relatively minor compared to its west coast peers, Miami has emerged as a significant IT centre in recent years. Wynwood, in particular, has emerged as a centre for arts, technology, and innovation.
In January, mayor Suarez told Fox Business that he is investigating allowing citizens to pay city taxes and levies with Bitcoin. "We want to be one of the most crypto-forward and technological cities in the country," he said. "So we're looking at … creating a regulatory framework that makes us the easiest place in the United States to do business if you're doing it in cryptocurrencies."
Regardless of market conditions, the global crypto infrastructure continues to expand and Overbit.com is here to support. Thanks again for reading and we’ll see you next week!