Hong Kong’s Securities and Futures Commission (SFC) announced Wednesday that it will permit licensed brokers to offer virtual asset margin financing and introduced a framework allowing trading platforms to provide perpetual contracts to professional investors.
Under the updated guidance, brokers can extend virtual asset financing to securities margin clients who demonstrate sufficient collateral and strong creditworthiness. At the outset, only Bitcoin and Ether will qualify as eligible collateral.
The regulator also outlined a high-level structure for licensed virtual asset trading platforms to launch leveraged perpetual contracts, with participation restricted to professional investors.
Affiliates of licensed platforms may act as market makers, provided they adhere to strict conflict-of-interest safeguards, maintain operational independence and implement robust security controls.
These measures aim to introduce structured leverage and enhance liquidity within Hong Kong’s regulated crypto market, while continuing to limit retail investor exposure.
Liquidity push under ASPIRe roadmap
Speaking at Consensus Hong Kong 2026, Eric Yip, the SFC’s executive director of intermediaries, said the regulator’s digital asset strategy has reached a “defining stage” under its ASPIRe roadmap — which stands for Access, Safeguards, Products, Infrastructure and Relationships.
“This year’s focus is on liquidity — cultivating market depth, strengthening price discovery and building investor confidence,” Yip said.
He noted that the margin financing initiative is built upon Hong Kong’s existing securities margin regime, incorporating controls on collateral standards, concentration limits, haircuts and governance requirements.
According to Yip, the objective is to enable “responsible leverage that supports liquidity without undermining financial stability.” He added that perpetual contracts will follow a principles-based approach requiring clear disclosures and strong internal risk management systems.
Regarding affiliate market makers, Yip said the safeguards are designed to “narrow spreads, improve fairness and transparency.”
Continued legislative expansion
The latest steps form part of Hong Kong’s broader crypto regulatory rollout.
On Jan. 31, authorities revealed plans to introduce a draft ordinance in 2026 covering crypto advisory services, alongside regulatory updates aligned with the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF).
Earlier, on Feb. 2, the Hong Kong Monetary Authority (HKMA) said it is preparing to issue its first stablecoin licenses in March, with initial approvals expected to be granted on a limited basis.
