Hong Kong is preparing to bring crypto perpetual contracts into its local regulatory framework. At Consensus 2026, the city’s Securities and Futures Commission said licensed trading platforms may be allowed to offer leveraged crypto derivatives under tight supervision, with access restricted to professional and institutional investors. Retail traders are not part of the initial plan.
SFC outlines a framework for perpetual contracts
SFC Chief Executive Julia Leung said the regulator will publish a high-level framework covering crypto perpetual products. Under that structure, licensed platforms could receive approval to list the contracts if they can meet defined risk-control standards. The regulator is focusing on risk management and market fairness, and platforms will need to show that their systems can handle leverage-driven volatility and liquidation events. Detailed technical requirements have not been released yet, and more guidance is expected later.
Crypto-backed financing is also on the agenda
The SFC is pairing the derivatives proposal with plans to allow crypto-backed financing. Leung said brokers may be able to extend financing to clients with strong credit profiles, using securities and virtual assets as collateral. The rollout will start narrowly. Because of volatility concerns, only Bitcoin and Ether are expected to qualify as crypto collateral at the outset, reflecting their deeper liquidity and stronger market depth.
Market-making will be allowed with conflict controls
Hong Kong’s regulator also intends to permit market-making on licensed platforms. Firms may use affiliated market makers, but they will have to demonstrate independence and maintain strict controls to manage conflicts of interest. The proposal shows that the SFC is looking beyond product approval and tying trading access to rules on liquidity and platform governance.
Hong Kong wants leveraged trading back onshore
Many traders in Hong Kong currently use offshore exchanges for leveraged crypto trading, leaving that activity outside local regulation and with fewer investor protections. The proposed framework is designed to shift part of that business back to licensed domestic venues operating under clear oversight. Hong Kong has already approved spot Bitcoin ETFs and licensed several crypto exchanges. Since launching its VATP licensing regime in 2023, the SFC has kept expanding the city’s virtual-asset rulebook, and its 2025 “ASPIRe” roadmap already covered areas such as tokenized funds and shared liquidity. A regulated perpetual-contract framework would add another layer to that market structure.