- Hong Kong‘s securities regulator will allow licensed brokers to offer crypto margin financing using Bitcoin and Ether as collateral.
- A new framework permits licensed platforms to offer perpetual contracts, but access is restricted to professional investors.
- The moves are part of a strategic focus on boosting market liquidity and depth under the SFC‘s ASPIRe roadmap.
Hong Kong’s Securities and Futures Commission announced on Wednesday that it will permit licensed brokers to offer virtual asset margin financing, introducing structured leverage into the city’s regulated crypto market. The new guidance initially restricts eligible collateral to only Bitcoin and Ether for clients with strong credit. Consequently, a parallel framework was outlined for trading platforms to develop leveraged perpetual contracts. However, this sophisticated product will be available exclusively to professional investors.
SFC executive director Eric Yip said during a keynote speech that the regulator’s digital asset strategy has entered a defining stage. “This year’s focus is on liquidity — cultivating market depth, strengthening price discovery and building investor confidence,” Yip stated at Consensus Hong Kong 2026. He explained the margin financing initiative is anchored to the existing securities framework with strict controls. The goal is to enable responsible leverage that supports liquidity without undermining financial stability.
Meanwhile, the regulator will allow affiliates of licensed platforms to act as market makers, subject to strict conflict-of-interest guardrails. These measures are designed to narrow spreads and improve market fairness. These regulatory steps build upon Hong Kong’s broader crypto policy rollout from earlier this year. In late January, authorities announced plans for a draft ordinance covering crypto advisory services in 2026.
Furthermore, the Hong Kong Monetary Authority is preparing to grant its first stablecoin issuer licenses as soon as March. This continued legislative effort solidifies Hong Kong’s position as a regulated digital asset hub.
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