Hong Kong financial authorities have announced new rules aimed at expanding the scope of product offerings, enabling the integration of crypto margin financing and perpetual contracts into the local virtual asset market.
Hong Kong Approves Crypto Margin Funding, Perps
On Wednesday, Hong Kong’s Securities and Futures Commission (SFC) unveiled a framework for licensed companies that provide virtual asset trading services (VA brokers) to offer virtual asset financing.
According to the SFC circular, the financial watchdog will allow VA brokers to extend credit to margin clients with strong credit profiles and sufficient securities collateral, under Pillar P of its Access, Safeguards, Products, Infrastructure and Relationships (ASPIRe) roadmap.
This will allow eligible margin clients to “increase their participation in VA trading, which can improve the liquidity of the Hong Kong VA market. At the same time, it can also facilitate the development of VA financing in a controlled risk environment.”
Under the new guidelines, only the two major cryptocurrencies, Bitcoin (BTC) and Ether (ETH), will be eligible as VA collateral. The regulator also published a high-level framework for licensed virtual asset trading platforms to offer crypto perpetual contracts to professional investors.
“As part of the ASPIRe roadmap, Pillar P reflects the SFC’s commitment to expanding the scope of product offerings, including Perps. This initiative aims to deepen market liquidity, expand risk management tools for investors, and further strengthen Hong Kong’s position as a leading global virtual asset hub,” the watchdog asserted.
The SFC highlighted that the introduction of Perps will bring new opportunities to the market, but noted that it also carries “a range of risks distinct from those associated with traditional futures or spot trading of virtual assets”.
Therefore, the framework requires platform operators to have robust management measures and transparent processes governing the management of valuation, margins, collateral and liquidation.
Hong Kong’s digital landscape in ‘defining phase’
Speaking at Consensus Hong Kong 2026 on Wednesday, Eric Yip, Executive Director of SFC Intermediaries, shared his views on the regulatory improvements being made by the watchdog for the next phase of Hong Kong’s crypto assets ecosystem.
Yip asserted that the development of crypto assets in Hong Kong has entered a “defining stage, shaped by the SFC’s ASPIRe roadmap which outlines an evolving regulatory framework aimed at strengthening market quality, resilience and global competitiveness.”
He highlighted this year’s focus on liquidity, “cultivating market depth, strengthening price discovery and building investor confidence through a strategic combination of expanded access and responsible product innovation.”
As the executive explained, the SFC expands the city’s range of crypto products under Pillar P while maintaining regulatory safeguards aligned with traditional financial market standards.
Yip notably highlighted the SFC’s green light for crypto margin financing, which will be anchored to the existing securities margin financing framework. He noted that this would provide clarity on the use of crypto assets as collateral, “enabling responsible leverage that supports liquidity without compromising financial stability.”
In addition, he also presented the new high-level framework for leveraged perpetual contracts for professional investors, which sets out a principles-based model.
Discussing how to balance innovation and regulatory clarity, he highlighted the upcoming digital asset accelerator to be established under Pillar Re, which will serve as a structured communication channel between the regulatory agency and industry innovators.
He concluded that “liquidity does not emerge organically; it must be cultivated through openness, strong governance and targeted regulatory design. Through targeted access reforms, product expansion and structured support for innovation, Hong Kong is well-positioned to become a leading global digital asset hub where liquidity thrives on a foundation of integrity, resilience and international cooperation.”
Bitcoin trades at $68,307 in the one-week chart. Source: BTCUSDT on TradingView
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