Hong Kong’s Securities and Futures Commission has rolled out a new set of virtual asset measures, allowing licensed virtual asset brokers to expand into margin financing, introducing its first high-level framework for perpetual contracts, and permitting affiliated companies of licensed trading platforms to act as market makers. The measures were announced on February 11.
Margin financing starts with BTC and ETH as eligible crypto collateral
Under the new guidance, licensed brokers that provide virtual asset dealing services may now offer virtual asset financing services to their securities margin clients. Those clients must have sound credit standing and sufficient collateral. Eligible collateral may include both securities and virtual assets, though the initial list of qualifying crypto collateral is limited to BTC and ETH.
The SFC said firms must put in place strong investor protection measures. In the regulator’s view, the change is meant to allow margin clients with solid credit profiles and adequate collateral to participate more actively in virtual asset trading while keeping risk within a controlled framework and improving market liquidity in Hong Kong.
Perpetual contracts enter the rulebook, but only for professional investors
This is the first time the SFC has set out a regulatory framework for perpetual contracts offered by licensed virtual asset trading platforms. Perpetuals are leveraged products and account for a large share of trading volume across global crypto markets, yet they had not been available in Hong Kong’s regulated market structure.
Access will be restricted to professional investors only, with retail participation excluded for now. At the initial stage, the framework covers only contracts tied to Bitcoin and Ether. Platforms will also need to maintain transparent product design, clear risk disclosures, and robust operational controls. They must be able to handle sharp market swings and liquidation events at the system level.
The SFC said the purpose of allowing perpetual contracts is to help investors carry out risk management strategies and support spot market liquidity in the underlying assets, rather than to encourage speculative trading.
Affiliated firms may make markets under conflict controls
The regulator also said affiliated companies of licensed virtual asset trading platforms may serve as market makers on those platforms, creating an additional source of liquidity. The approval comes with conditions. Market-making units must operate independently, internal controls must be comprehensive, and trading activity must remain under ongoing monitoring.
That structure reflects the SFC’s attempt to add liquidity without loosening controls around conflicts of interest. For platforms, affiliated market makers can improve depth. For the regulator, surveillance and separation remain central.
SFC says the rollout will follow a gradual path
SFC Executive Director of Intermediaries Dr. Eric Yip said the commission is following a gradual development approach under its ASPIRe roadmap, describing it as important to the scaled growth of Hong Kong’s digital asset market. He said the targeted measures are designed to strengthen market liquidity and show the regulator’s commitment to developing the market in a sustainable and collaborative way.
SFC Chief Executive Officer Julia Leung also announced the measures publicly at CoinDesk Consensus Hong Kong 2026, saying Hong Kong is working to build a complete virtual asset ecosystem. According to the report, stablecoin-related licences are expected to be issued in March this year. The SFC added that it will keep monitoring implementation and stay in communication with the industry.