Hong Kong’s Securities and Futures Commission (SFC) has made another significant move in advancing its digital asset strategy. The regulator will now permit licensed cryptocurrency exchanges to connect their local and international order books, granting them access to global capital markets. This marks a departure from the previous “ringfenced” framework, which restricted trading activity to Hong Kong–based investors.
A Major Step Toward Global Integration
Hong Kong’s Securities and Futures Commission (SFC) has taken a significant step forward in its digital asset roadmap. During Hong Kong Fintech Week on November 3, SFC Chief Executive Officer Julia Leung announced that licensed crypto exchanges will now be allowed to link their local and international order books. Leung explained that the move came after ensuring robust investor protection measures were in place. “Once we are sure that we are able to protect investors, we do relax—as we did with the global liquidity,” she said.
The new policy brings Hong Kong’s digital asset trading framework closer to global standards. It enables platforms to access international liquidity, offering investors deeper markets and improved efficiency. The decision also underscores Hong Kong’s determination to establish itself as a leading global hub for digital assets.
Part of a Bigger Regulatory Shift
This development is part of Hong Kong’s broader effort to modernize its financial and regulatory landscape. Over the past three years, the city has implemented a series of reforms designed to strengthen its position in the global crypto market. These include licensing virtual asset exchanges, approving Bitcoin and Ether exchange-traded products (ETPs), and regulating digital asset funds.
In parallel, Hong Kong is building licensing frameworks for crypto dealers, custodians, and stablecoin issuers. The Hong Kong Monetary Authority (HKMA) — the city’s de facto central bank — is expected to issue the first stablecoin licenses next year. Leung also hinted at future expansions, suggesting that locally licensed crypto brokers could eventually gain access to global liquidity pools. “That’s for another day,” she said, implying further liberalization once the current system proves resilient.
Global Firms Could Take an Interest
The SFC’s new policy could attract major international crypto firms to Hong Kong. Industry giants like Binance and Coinbase may explore operating in the city under broker licenses rather than full exchange licenses, which typically take longer to obtain. Broker licenses provide a faster path to market entry while still allowing firms to connect with global capital markets.
Currently, the SFC lists 11 fully licensed crypto exchanges and 49 authorized brokers offering virtual asset services under omnibus accounts. With the new flexibility, that number could grow rapidly as more players enter the market.
Balancing Innovation and Oversight
Hong Kong’s approach stands in sharp contrast to mainland China’s outright ban on crypto trading. Rather than imposing restrictions, the city is embracing a model that prioritizes innovation alongside regulatory oversight. Leung acknowledged that Hong Kong remains “on the tougher side” when it comes to compliance, but stressed that this reflects a focus on investor trust and long-term stability.
The SFC’s decision marks a new era in Hong Kong’s crypto evolution—one in which local exchanges can compete globally, investors gain broader access to markets, and the city strengthens its position as a bridge between East and West in the digital finance ecosystem.
