China’s largest stock trading platform, Futu Niuniu, Tiger Securities, can no longer search for Bitcoin ETF market data. The blackout comes at the backbone of their success after BITO’s listing.
Futu Niuniu and Tiger Securities have been unable to search for the market data of two Bitcoin ETFs, including Valkyrie’s BTF or ProShares BITO. The Chinese government seems to enforce its regulations even on companies working abroad. The blackout comes at the backbone of their success after BITO’s listing. BITO was the number one hot stock in the Tiger Securities app. It is not yet clear why the companies cant search for Bitcoin ETF currently.
Tiger and Futu played an integral part in a record number of Chinese IPO deals. These, despite threats from China to block any future American involvement. Last year, the two firms advised on 26 U.S.-based IPOs. Besides, they also helped their clients get listed abroad through offshore listings.
Futu and Tiger facing risks of new personal data privacy law
Futu and Tiger have attracted one million brokerage clients, which has helped provide trading flows in droves. In early September, tech stocks were falling in the entire United States. The two entities helped contribute almost $1 billion to Tesla Inc.’s value.
Yet, Futu and Tiger are both facing risks as China’s new personal data privacy law takes effect on Nov 1.
The Chinese authority is cracking down on big technology firms focusing on crypto. Yet, these same giants have found success in the US with IPO underwriting.
Investors in China are taking their money to brokers that help them invest overseas. But these firms could run into problems with data privacy rules and compliance risks.
China targets the most extensive stock software
China’s latest round of governing attacks has come in a flurry, targeting cryptocurrency. The People Daily News lists Chinese online agents next on the list for firm oversight and docility. The total crackdown comes as China braces itself arising from trade wars with America.
Futu, reacting to a piece that discussed how they protect user data, said. “Since our launch, Futus has insisted that the security of information and data is supreme.”
“Futu stands firm on its pledge for strict compliance with relevant laws & regulations,” they said.
China plans to execute a new law to govern cyberspace and enhance national security. The Personal Information Protection Law takes effect on Nov 1. And it will complement China’s Data Security Law. It’s okay for the country’s investors to invest abroad in cross-border Connect schemes. And Qualified Domestic Institutional Investors (QDII).
The new rules will regulate the export of personal data. They are posing a challenge and a threat to online brokers. In most cases, these brokers provide cross-border trading services for mainland Chinese citizens.
Futu and Tiger Securities don’t have brokerage licenses on the mainland. But, Chinese citizens can open accounts with them online. Citizens must submit personal data related to ID cards, bank cards, and tax records for this to happen.