Hong Kong Crypto Exchange Coinsuper Shifts Focus to Institutional Investors
Hong Kong-based cryptocurrency exchange Coinsuper is apparently moving its focus from retail traders to institutional investors. This is the latest example of how regulations and trading volumes relocating to OTC platforms are affecting the business methods of crypto exchanges.
Coinsuper Exchange Pivots Focus
Coinsuper, a Hong Kong-based cryptocurrency exchange which declares to have one million registered users, is supposedly refocusing its business on drawing in and serving institutional financiers. The company’s engineers in mainland China are said to be re-tailoring the platform to fit institutional customers’ needs such as portfolio management and compliance with reporting requirements. Management also hopes to be approved a license by the Hong Kong Securities and Futures Commission (SFC) following its “sandbox” period.
“Institutional clients are mindful of security breaches and we have actually found out a lot from the marketplace. If our infrastructure is stable and robust, we would naturally attract trading volume. We are not stressed over declines in trading volume too much,” Karen Chen Qing, CEO of Coinsuper, told the South China Morning Post. She likewise described that in contrast to retail traders professional financiers have more knowledge and monetary capability to bear the volatility of trading virtual assets.
Market Shifting to Institutional Investors
The institutional sector has actually drawn in the attention of cryptocurrency trading communities increasingly more as retail spot volumes declined due to the persistent bearish market. Numerous exchanges have actually adapted by introducing over the counter (OTC) desks and other services committed to big players. Regulations likewise play a part in driving businesses to the institutional market, especially for efforts located in Hong Kong such as Coinsuper.
In November 2018, the SFC presented brand-new rules which lots of observers predicted would restrict cryptocurrency trading to institutional financiers. Portfolio supervisors and funds that plan to invest more than 10 percent of their portfolios in virtual assets are needed to acquire a license which suggests just qualified institutional investors with a minimum of HK$ 8 million ($1 million) will be enabled to invest in virtual asset portfolios.
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