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Hong Kong plans to relax crypto trading rules to allow licensed platforms to connect to global liquidity pools and encourage more trading in the city.
The Securities and Futures Commission (SFC) said the changes will allow local exchanges to merge their local order books with global order books and expand the range of digital asset products they can offer, including tokenized securities and stablecoins approved by the Hong Kong Monetary Authority.
The moves are part of Hong Kong’s broader push to position itself as Asia’s leading crypto hub while maintaining strict investor protections. The city has already introduced a licensing regime for exchanges and exchange-traded fund (ETF) products that track Bitcoin and Ethereum.
“Today we take an important step to connect to global liquidity” said Julia Leung, general manager of SFC. “Making steady progress in market liquidity and trading offerings is essential to maintain the growth momentum of Hong Kong’s digital asset ecosystem. »
Hong Kong’s Liquidity Rise: From Containment to Global Relevance
November 2025 — In a historic move, Hong Kong’s Securities and Futures Commission (SFC) dismantled one of Asia’s most restrictive crypto barriers on November 3, granting licensed virtual asset trading platforms… pic.twitter.com/YLhqRADc2s
— Coby Vu | FVM Search (@Cobyvu8820) November 3, 2025
Crypto platform operators can connect to global order books
Buy by combining local and global order books, the SFC believes that “Hong Kong investors will benefit from increased market liquidity and more competitive pricing,” while being protected by “robust safeguards to mitigate additional risks.”
Previously, orders had to be pre-financed and paid for within Hong Kong’s borders. Local crypto platforms that wish to connect their order books will need to obtain written approval from the SFC.
Crypto Firms May Offer More Trading Services
The SFC also said that crypto platform operators will be allowed to offer digital asset trading without having a 12-month operating history, an authorization that only applies to professional investors and stablecoins currently licensed by the Hong Kong Monetary Authority (HKMA).
The SFC now also allows platform operators to distribute tokenized securities as well as other investment products linked to digital assets.
Additionally, the SFC said companies affiliated with these trading platforms may provide clients with custody services for their digital assets or tokenized securities, even if the assets are not listed or traded on the platforms.
Hong Kong ranked highest in terms of adoption
Hong Kong is currently ranked fifth in the world in terms of crypto adoption, according to the Chainalysis Global Crypto Adoption Index.
Hong Kong ranks fifth in the overall index ranking (Source; On-Chain Analysis)
Hong Kong has also been striving for three years to become a regional leader in digital assets and has so far established a licensing regime for crypto platforms, exchange-traded products (ETPs) that track BTC and ETH, and currently also oversees crypto funds.
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