Hong Kong’s Securities and Futures Commission said Wednesday it will 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 new guidance, brokers may extend virtual asset financing to securities margin clients with sufficient collateral and strong credit profiles. Initially, only Bitcoin (BTC) and Ether (ETH) will be eligible as collateral.
The regulator also set out a high-level framework for licensed virtual asset trading platforms to develop leveraged perpetual contracts. Access will be restricted to professional investors.
Affiliates of licensed platforms will be allowed to act as market makers, subject to conflict-of-interest guardrails, functional independence and security controls.
The measures introduce structured leverage and additional liquidity mechanisms into Hong Kong’s supervised crypto market while keeping retail access limited.
Liquidity focus under the ASPIRe roadmap
In a keynote speech at Consensus Hong Kong 2026, Eric Yip, the SFC’s executive director of intermediaries, said the regulator’s digital asset strategy has entered a “defining stage” under its Access, Safeguards, Products, Infrastructure and Relationships (ASPIRe) roadmap.
“This year’s focus is on liquidity — cultivating market depth, strengthening price discovery and building investor confidence,” Yip said.
He said the margin financing initiative is anchored to the existing securities margin framework, including controls on collateral quality, concentration limits, haircuts and governance.
Yip said the goal is to enable “responsible leverage that supports liquidity without undermining financial stability,” adding that perpetual contracts will follow a principles-based model requiring transparent disclosures and strong internal risk management.
On affiliate market makers, Yip said safeguards are designed to “narrow spreads, improve fairness and transparency.”
Related: Hong Kong defends ‘same risk, same regulation’ approach for crypto at WEF
Broader legislative rollout continues
The latest measures build on Hong Kong’s broader crypto policy rollout.
On Jan. 31, authorities announced plans to submit a draft ordinance covering crypto advisory services in 2026, alongside updates tied to the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF).
On Feb. 2, the Hong Kong Monetary Authority (HKMA) said it is preparing to grant its first stablecoin issuer licenses in March, with initial approvals expected to be limited.
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