Hong Kong Moves to Allow Crypto Perpetual Trading

Hong Kong is preparing to open the door to crypto perpetual trading. The city’s Securities and Futures Commission (SFC) said it is working on a framework. Which would allow licensed platforms to offer perpetual contracts. The announcement came on February 11 during the Consensus 2026 conference.

The plan forms part of a broader push to build a complete virtual asset ecosystem. Under the proposal, only professional investors will gain access at first. The products will likely start with Bitcoin and Ethereum, with strict risk controls in place.

SFC Unveils New Regulatory Initiatives

SFC Chief Executive Julia Leung shared the update during her conference remarks. She said the regulator is preparing several measures to improve the crypto market structure. One of the key initiatives involves margin financing. Brokers may soon offer financing to clients with strong credit profiles. These loans could use securities and crypto as collateral.

Another step focuses on perpetual contracts. The SFC plans to publish a high level framework. That allows licensed platforms to offer these leveraged products. The third initiative deals with liquidity. The regulator may allow licensed platforms to use affiliated market makers. But those firms must prove independence and manage conflicts of interest. Julia Leung said these moves aim to build a stronger and more complete crypto ecosystem.

Key Limits on the New Perpetual Framework

The planned rules come with several restrictions. Perpetual contracts will first apply only to Bitcoin and Ethereum. These are the largest and most established crypto assets. Access will also be limited to professional investors. Retail traders will not be able to use these products at the start. This approach reflects the regulator’s cautious stance.

Only licensed trading platforms will offer the contracts. These platforms must meet strict transparency and risk management standards. They will also need systems to handle volatility and liquidation events. For now, the Hong Kong SFC has not released full details. The framework is still in the development stage.

Shift From Offshore to Regulated Markets

Many Hong Kong traders currently use offshore exchanges for leveraged crypto trading. These platforms often operate outside local regulations. As a result, users face higher risks and fewer protections. The new framework could bring this activity back onshore. Licensed platforms would offer perpetual trading under clear rules. This could improve market safety and transparency.

The change may also attract more institutional investors. Many large firms prefer regulated environments before entering derivatives markets. Hong Kong has already taken steps in this direction. The city approved spot Bitcoin ETFs and licensed several crypto exchanges in recent years.

Part of Hong Kong’s Bigger Crypto Strategy

The new derivatives plan fits into Hong Kong’s wider crypto roadmap. The city wants to position itself as a major digital asset hub in Asia. Officials have also promoted tokenized assets and stablecoin projects. For example, tokenized gold funds have grown quickly over the past year.

By adding margin and perpetual products, Hong Kong aims to build a full trading stack. Also, this includes spot markets, financing tools and derivatives. For now, the approach remains cautious. Still, the move shows the city’s intent to compete with other crypto friendly hubs.

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