The Hong Kong Securities and Futures Commission said on Wednesday it would allow licensed brokers to provide virtual asset margin financing and outlined a framework for trading platforms to offer perpetual contracts to professional investors.
Under the recent one conductivitybrokers can provide virtual asset financing to clients who have securities margined and have sufficient collateral and a forceful credit profile. Initially, only Bitcoin (BTC) and Ether (ETH) will be eligible as collateral.
The regulator also set out a general framework for licensed virtual asset trading platforms to develop leveraged perpetual contracts. Access will be narrow to professional investors.
Affiliates of licensed platforms will be able to act as market makers, subject to safeguards related to conflict of interest, functional independence and security controls.
The measures introduce structural leverage and additional liquidity mechanisms in Hong Kong’s supervised cryptocurrency market, while restricting retail access.
Focus on liquidity as part of the ASPIRe action plan
In the keynote speech at Consensus Hong Kong 2026, Eric Yip, Executive Director of SFC Intermediaries, he said The regulator’s digital assets strategy has entered the “definition stage” in line with its Access, Security, Products, Infrastructure and Relationships Action Plan (ASPIRe).
“The focus this year is on liquidity – cultivating market depth, improving price discovery and building investor confidence,” Yip said.
He said the margin financing initiative is anchored in the existing securities margin framework, including collateral quality controls, concentration limits, haircuts and governance.
Yip said the aim is to enable “responsible leverage that supports liquidity without undermining financial stability,” adding that perpetual contracts will follow a rules-based model requiring see-through disclosures and forceful internal risk management.
For affiliated market makers, Yip said, the safeguards are intended to “tighten spreads, improve fairness and transparency.”
Related: Hong Kong defends the “same risk, same regulation” approach to cryptocurrencies at the WEF
Broader implementation of the legislation is ongoing
The latest measures build on the broader implementation of crypto policy in Hong Kong.
On January 31, authorities announced plans to present a draft regulation covering crypto advisory services in 2026, along with updates related to the Organization for Economic Co-operation and Development’s (OECD) Cryptocurrency Reporting Framework (CARF).
On February 2, the Hong Kong Monetary Authority (HKMA) said it was preparing to grant its first stablecoin issuer licenses in March, with initial approvals expected to be narrow.
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