Hong Kong’s Securities and Futures Commission (SFC) outlines 12 new initiatives to expand digital asset regulations and attract global liquidity.
Hong Kong’s Push for Crypto Expansion
Hong Kong is reinforcing its status as a global crypto hub with a new regulatory roadmap. The SFC has announced 12 initiatives aimed at enhancing security, market innovation, and regulatory clarity for digital assets.
The framework seeks to facilitate new token listings, develop crypto derivatives markets, and explore staking services for institutional investors. The SFC will also introduce licensing regimes for over-the-counter (OTC) trading and crypto custody services.
Opening the Door for New Token Listings
Currently, only Bitcoin and Ethereum are legally available for retail trading in Hong Kong. Under the new proposal, the SFC may expand listings for professional investors while reviewing safeguards for retail market participation.
Additionally, the regulator plans to study the feasibility of margin trading, lending, and structured crypto investment products.
Institutional Access to Staking and Derivatives
The SFC aims to introduce staking guidelines that would mitigate slashing and liquidity risks while ensuring compliance with custody regulations.
On the derivatives front, Hong Kong is exploring options for institutional-grade trading products to enhance risk management and market efficiency. The initiative is designed to reduce barriers for global liquidity providers looking to connect with Hong Kong’s digital asset ecosystem.
As global competition for crypto leadership intensifies, Hong Kong’s regulatory advancements could position it as a key destination for institutional investors and blockchain innovators.
