Hong Kong monetary authorities have introduced new guidelines to broaden the scope of product choices, permitting the combination of crypto margin financing and perpetual contracts into the native digital property market.
Hong Kong Approves Crypto Margin Financing, Perps
On Wednesday, Hong Kong’s Securities and Futures Fee (SFC) unveiled a framework for licensed firms that present digital asset dealing providers (VA brokers) to supply digital asset financing.
In keeping with the SFC’s round, the monetary watchdog will allow VA brokers to increase credit score to margin purchasers with robust credit score profiles and adequate securities collateral, underneath Pillar P of its Entry, Safeguards, Merchandise, Infrastructure and Relationships (ASPIRe) roadmap.
This can permit eligible margin purchasers to “enhance their participation in VA buying and selling, which may improve the liquidity of Hong Kong’s VA market. On the similar time, this may additionally facilitate the event of VA financing in a risk-controlled setting.”
Below the brand new steerage, solely the 2 main cryptocurrencies, Bitcoin (BTC) and Ether (ETH), might be eligible as VA collateral. The regulator additionally launched a high-level framework for licensed digital asset buying and selling platforms to supply crypto perpetual contracts to skilled buyers.
“Below the ASPIRe roadmap, Pillar P displays the SFC’s dedication to increasing the scope of product choices, together with Perps. This initiative goals to deepen market liquidity, broaden threat administration instruments for buyers, and additional strengthen Hong Kong’s place as a number one world digital asset hub,” the watchdog affirmed.
The SFC emphasised that the introduction of Perps will deliver new alternatives to the market, however famous that it additionally carries “a variety of dangers which can be distinct from these related to conventional futures or spot buying and selling of digital property.”
Subsequently, the framework requires platform operators to have sturdy administration measures and clear processes governing valuation, margining, collateralization, and liquidation administration.
Hong Kong Digital Panorama In ‘Defining Stage’
Talking at Consensus Hong Kong 2026 on Wednesday, Eric Yip, SFC’s Government Director of Intermediaries, shared his views on the watchdog’s regulatory enhancements for the following section of Hong Kong’s crypto property ecosystem.
Yip affirmed that Hong Kong’s crypto asset improvement has entered a “defining stage, formed by the SFC’s ASPIRe roadmap that outlines a future-proof regulatory framework geared toward deepening market high quality, resilience, and world competitiveness.”
He emphasised this 12 months’s concentrate on liquidity, “cultivating market depth, strengthening worth discovery, and constructing investor confidence by a strategic mix of expanded entry and accountable product innovation.”
As the manager defined, the SFC is increasing the town’s crypto product suite underneath Pillar P whereas sustaining regulatory guardrails aligned with conventional monetary market requirements.
Notably, Yip highlighted the SFC’s greenlight of crypto margin financing, which might be anchored to the prevailing securities margin financing framework. He famous that it’ll present clarification on using crypto property as collateral, “enabling accountable leverage that helps liquidity with out undermining monetary stability.”
As well as, he additionally outlined the brand new high-level framework for leveraged perpetual contracts for skilled buyers, which units out a principles-based mannequin.
Discussing bridge innovation and regulatory readability, he pointed to the upcoming Digital Asset Accelerator to be arrange underneath Pillar Re, which can function a structured communication channel between the regulatory company and trade innovators.
He concluded that “liquidity doesn’t emerge organically; it should be cultivated by openness, robust governance, and a purposeful regulatory design. By way of focused entry reforms, product enlargement, and structured innovation help, Hong Kong is well-positioned to grow to be a number one world digital property centre the place liquidity thrives on a basis of integrity, resilience, and worldwide cooperation.”
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