Hong Kong’s Securities and Futures Commission (SFC) said it will permit licensed brokers to provide virtual asset margin financing and outlined a regulatory framework for crypto perpetual contracts aimed at professional investors. The measures mark a further expansion of the city’s supervised digital asset market while maintaining limits on retail participation.
Under the updated guidance, brokers may extend margin financing backed by virtual assets to eligible securities margin clients with sufficient collateral and established credit profiles. Initially, only Bitcoin and Ether will qualify as collateral. The SFC said the initiative is structured within the existing securities margin regime, including controls on collateral concentration, valuation haircuts, and governance standards.
The regulator also introduced a high-level framework allowing licensed virtual asset trading platforms to develop leveraged perpetual contracts. Access will be restricted to professional investors, and affiliated entities may act as market makers subject to conflict-of-interest safeguards, operational independence, and enhanced security requirements.
Liquidity and Market Depth under ASPIRe
In remarks delivered at Consensus Hong Kong 2026, SFC Executive Director Eric Yip said the regulator’s digital asset agenda has entered a “defining stage” under its Access, Safeguards, Products, Infrastructure and Relationships, or ASPIRe, roadmap. He characterized liquidity and price discovery as central priorities for 2026.
Yip said the margin financing framework is designed to enable responsible leverage that supports market depth without undermining financial stability. He added that perpetual products will follow a principles-based model emphasizing disclosure, internal risk controls and transparent governance. The inclusion of affiliate market makers, he noted, aims to narrow spreads and improve execution quality within a supervised environment.
Competitive Positioning in Regional Crypto Markets
The policy shift comes as Asian financial centers compete to attract digital asset businesses amid evolving global regulatory standards. Hong Kong has pursued a regulated-access model, emphasizing institutional participation and robust oversight rather than broad retail liberalization.
Recent announcements include plans to introduce legislation covering crypto advisory services and align reporting requirements with the OECD’s Crypto-Asset Reporting Framework. Separately, the Hong Kong Monetary Authority has indicated it may begin granting stablecoin issuer licenses in the coming months, with initial approvals expected to be limited.
Together, the margin financing and perpetual trading framework signal Hong Kong’s intent to deepen its regulated crypto derivatives and financing markets. By expanding product offerings for professional investors while preserving supervisory guardrails, authorities are seeking to balance innovation, competitiveness and systemic risk management in a rapidly evolving sector.