In a significant stride towards solidifying Hong Kong’s position as a leading global virtual asset hub, the Securities and Futures Commission (SFC) is set to roll out three pivotal new measures. SFC Chief Executive Julia Leung announced these forthcoming initiatives, which include allowing trading platforms to offer perpetual contracts, enabling brokers to provide financing against Bitcoin and Ethereum collateral, and facilitating enhanced market liquidity.
Speaking at the “Consensus 2026” conference in Hong Kong, Ms. Leung revealed that the SFC will soon publish a “high-level regulatory framework” for the provision of perpetual contracts. Initially, these complex derivatives will be exclusively accessible to “professional investors,” with a cautious approach taken before any potential expansion to retail participants.
The regulatory framework for perpetual contracts will place a strong emphasis on stringent risk management. Platforms offering these services will be mandated to demonstrate exceptional transparency, robust capabilities in managing funding rate volatility and automatic liquidation risks, and an unwavering commitment to maintaining fair trading mechanisms for their clients.
Adding another layer of innovation, the SFC will permit licensed brokers to extend financing services to creditworthy clients. Crucially, this marks a groundbreaking development: for the first time, Bitcoin (BTC) and Ethereum (ETH) will be recognized as eligible collateral, alongside traditional securities. This move is expected to unlock new avenues for capital efficiency within the digital asset ecosystem.
Ms. Leung clarified that the decision to initially accept only BTC and ETH as collateral reflects the SFC’s prudent, phased strategy, acknowledging the inherent volatility of virtual assets. This initial focus on the largest and most liquid cryptocurrencies aims to mitigate risks while fostering responsible growth.
To further enhance market efficiency and depth, the SFC also plans to ease regulations concerning market liquidity. Trading platforms will be permitted to provide liquidity through “independently operated market-making departments.” This allowance comes with strict prerequisites: platforms must establish rigorous mechanisms to prevent conflicts of interest and ensure that their market-making divisions operate with substantial independence and adhere to comprehensive, well-defined rules.
These forward-looking initiatives, Ms. Leung underscored, are a direct continuation of Hong Kong’s 2025 virtual asset development blueprint. The overarching goal is to encourage industry participants to innovate and offer a broader spectrum of products and services, thereby driving the sustained growth and maturity of the local virtual asset market.
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