Hong Kong’s Securities and Futures Commission is building a framework that would let licensed platforms offer crypto perpetual trading, with access initially limited to institutional and professional investors. Speaking at the Consensus Hong Kong conference on February 11, 2026, SFC CEO Julia Leung said the regulator has made these products a priority, aiming to draw professional traders back from offshore venues into a regulated local market.
Initial rollout centers on Bitcoin and Ether
Perpetual contracts do not expire. Instead, they use a funding rate to keep contract prices close to the underlying market, which is why they are widely used by larger investors for hedging. According to the source material, Hong Kong plans to begin with Bitcoin and Ethereum, a narrower starting point designed to focus on assets with deeper liquidity.
The regulator is also setting clear operating conditions. Platforms will need systems strong enough to handle sharp price moves and liquidation events. Access will not be opened to retail traders at this stage. The products are reserved for institutions and expert investors, showing that risk controls are central to the rollout.
Margin financing and market-making are part of the plan
Alongside perpetual trading, the SFC is also moving ahead with margin financing. Under the plan described in the source, brokers would be able to lend to clients using Bitcoin or Ether as collateral, giving larger firms another way to manage cash flow. Because those assets can swing heavily, the regulator is keeping the first phase limited to the two largest cryptocurrencies.
To support deeper liquidity, affiliated ecosystem market makers may also be allowed to provide buy and sell orders on platforms. That access comes with a condition: the firms involved must be shown to operate independently. The rule is meant to reduce conflict-of-interest concerns while ensuring enough depth for larger trades.
Push to shift activity from offshore venues to regulated local platforms
The direction of travel is clear. Hong Kong wants more complex crypto trading activity to take place inside its own regulated system rather than on offshore exchanges. The source argues that this gives traders stronger legal protection than they would typically find on unregulated venues. It also notes that with spot ETFs already gaining traction, adding derivatives would leave Hong Kong with a more complete virtual asset market structure.
The original article also carries a risk warning: leveraged products such as perpetuals can lead to significant losses, and crypto markets remain highly volatile. The information is presented for informational purposes and not as financial advice.