Hong Kong Expands Crypto Rules for Professional Traders

Hong Kong’s Securities and Futures Commission (SFC) has introduced significant changes to the country’s crypto rules on Wednesday, enabling licensed companies to offer cryptocurrency margin financing and perpetual contracts to professional investors. The new regulations are part of an effort to support Hong Kong in becoming a leading global center for digital asset operations.

According to an official circular released by the Hong Kong Securities and Futures Commission (SFC), the agency has officially published a new guide that outlines several significant changes to the existing crypto rules and expands the scope of its regulation.

 Expanded Virtual Asset Trading Platform Rules

 Licensed virtual asset trading platforms can now offer cryptocurrency perpetual contracts to their customers, a highly popular derivative instrument globally. However, this option will be available only to professional investors who have a clear understanding of the risks associated with these types of instruments.

In the past, the SFC has been cautious about allowing retail investors to participate in high-risk financial instruments such as cryptocurrency perpetual contracts. Virtual asset trading platforms must implement a number of stringent risk management guidelines in order to offer perpetual contracts to professional investors.

Virtual asset trading platforms must also continue to meet all regulatory obligations throughout the period during which they operate under the amended crypto rules.

Also Read | Hong Kong Sets March Deadline for First Licensed Stablecoin Issuers

Additional Collateral Options for Crypto Margin Financing

As part of the same announcement, the SFC has also issued additional guidance that supports further development of Hong Kong’s evolving crypto rules. Under the new guidance, licensed intermediaries may now offer margin financing for cryptocurrency trading using a wider variety of collateral options than was previously available.

For example, Bitcoin and Ethereum were specifically identified as eligible collateral options provided that the intermediary conducts sufficient client suitability assessments and maintains effective internal risk controls. The new rules aim to increase the liquidity of Hong Kong’s regulated cryptocurrency market while providing adequate protection for investors.

Market Liquidity Focus for 2026

 During his address to attendees of the Consensus Hong Kong Conference, SFC Executive Director of Intermediaries Eric Yip stated that the recently issued crypto rules fit into the SFC’s priorities for 2026.

According to Yip, this year the focus is not on expanding the cryptocurrency industry quickly, but on improving the overall quality of the market.

“[This year] it is about liquidity, which involves building market depth, enhancing price discovery, and establishing investor confidence via a strategic combination of expanded access and thoughtful product innovation,” he stated.

Why It Matters

 The new crypto rules expand the availability of products and services offered to the public in Hong Kong’s digital asset market while protecting investor interests. This provides a delicate balance that many regulatory bodies around the world are still trying to achieve.

Also Read | Hong Kong Rolls Out Stablecoin Licensing to Dominate 2026 Crypto Market