The Hong Kong Securities and Futures Commission (SFC) has issued new guidance expanding product and service options in Hong Kong’s virtual asset (VA) market, including allowing licensed brokers providing VA dealing services to offer VA financing to their securities margin clients and setting a high-level framework for licensed virtual asset trading platforms (VATPs) to develop VA-related leveraged products for professional investors. VA brokers may provide financing for VA dealing subject to sufficient collateral and robust investor safeguards, with the SFC framing this as enabling margin clients with strong credit profiles and collateral to participate more actively in VA trading in a risk-controlled way. For VATPs, the new framework is intended to guide the development of perpetual contracts offered exclusively to professional investors and sets expectations around investor protection, transparent product design, clear disclosures and robust operational controls. Separately, affiliates of licensed VATPs may act as market makers on their platforms where safeguards are in place to mitigate conflicts of interest, creating an additional route to support platform liquidity. The SFC indicated it will monitor implementation closely and continue engaging with stakeholders.
Hong Kong Securities & Futures Commission 2026-02-11
Hong Kong Securities and Futures Commission issues guidance enabling virtual asset margin financing, professional-investor perpetual contracts and affiliated market makers
The Hong Kong Securities and Futures Commission issued guidance expanding virtual asset market options, allowing licensed brokers to offer virtual asset financing to securities margin clients and setting a framework for virtual asset trading platforms to develop leveraged products for professional investors. The guidance emphasizes robust investor safeguards, transparent product design, and operational controls, with the SFC monitoring implementation and engaging stakeholders.