SFC launches trading initiatives to boost digital asset market vibrancy in Hong Kong
The Securities and Futures Commission (SFC) today issued new guidance to extend virtual asset (VA) services to margin financing for licensed brokers providing VA dealing services (VA brokers), and to set out a high-level framework to guide virtual asset trading platforms (VATPs) in developing proposals for VA‑related leveraged products intended for professional investors.
As part of its latest measures to expand product and service diversity under the ASPIRe Roadmap (Note 1), the SFC is allowing VA brokers to offer VA financing to their securities margin clients, subject to the sufficiency of collateral and robust investor safeguards (Note 2). This would enable margin clients with strong credit profiles and collateral to participate more actively in VA trading, thus enhancing the liquidity of Hong Kong's market in a risk-controlled manner.
For licensed VATPs, the SFC has set out, for the first time, a high-level framework to guide them in developing perpetual contracts, which are leveraged instruments, for offering exclusively to professional investors. This aims to support their risk management strategies and also deepen liquidity in the underlying spot market. To ensure investor protection, transparent product design, clear disclosures and robust operational controls for these leveraged products are outlined (Note 3).
To further drive VA trading activity in Hong Kong, the SFC permits affiliates of licensed VATPs to act as market makers on their platforms, provided that strong safeguards are in place to mitigate conflicts of interest (Note 4). Participation of these affiliates should provide licensed VATPs with an additional avenue for liquidity.
“Our structured development approach based on the ASPIRe Roadmap is essential to scaling our digital asset market,” said Dr Eric Yip, the SFC's Executive Director of Intermediaries. “These targeted initiatives to enhance liquidity showcase the SFC's unswerving commitment to developing Hong Kong's digital asset market in a sustainable and collaborative manner.” (Note 5)
The SFC will continue to monitor implementation closely and engage with stakeholders to ensure these measures promote a safe and competitive market environment in Hong Kong.
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Notes:
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Please see the ASPIRe Roadmap issued on 19 February 2025 for details.
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Please refer to the SFC’s “Circular on licensed corporations providing virtual asset dealing services (1) to offer financing for virtual asset dealing and access to shared order book, and (2) to safeguard client virtual assets relating to withdrawals” issued today.
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Please refer to “A high-level framework for virtual asset perpetual contracts offering by virtual asset trading platforms” issued by the SFC today.
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Please refer to the SFC’s “Circular on permitting virtual asset trading platform operators to accept affiliated market makers” issued today.
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Please refer to the synopsis of Dr Yip’s keynote speech delivered at Consensus Hong Kong on 11 February 2026.
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