Hong Kong is enhancing its virtual asset trading landscape as it aims to establish itself as Asia’s digital asset hub, according to a statement from its financial regulator on Wednesday.
The Securities and Futures Commission (SFC) plans to introduce new licensing regimes for over-the-counter (OTC) trading in virtual assets and custody services, with the goal of improving market efficiency and investor protections.
The initiative was announced by SFC CEO Julia Leung during CoinDesk’s Consensus Hong Kong 2025 conference, where she also revealed that derivative trading and margin financing options for virtual assets are currently under review. This move follows Hong Kong’s 2022 strategy to become a virtual asset trading center, particularly in the wake of Beijing’s comprehensive ban on cryptocurrency transactions in mainland China.
Since then, Hong Kong has made significant strides, including the launch of Asia’s first spot crypto exchange-traded funds and the issuance of nine virtual asset trading platform (VATP) licenses, as noted by the city’s financial secretary, Paul Chan, at the conference. Additionally, regulators are advancing the regulation of stablecoins, having introduced relevant legislation to foster further innovation.
On the same day, the SFC published a 12-point ASPIRe roadmap outlining its vision for Hong Kong to become a global digital asset hub. As of last October, the SFC had licensed only two cryptocurrency exchanges, but that number has since increased to ten, following the recent licensing of Bullish, founded by Block.one and backed by Peter Thiel.
Among the SFC’s top priorities is the establishment of licensing regimes for OTC virtual asset marketplaces and virtual asset custodians. While the regulator aims to enhance compliance and consumer protection, it is also willing to embrace the innovative aspects of web3, despite their associated risks.
Currently, several activities remain prohibited in Hong Kong, even for licensed exchanges, including new token issuance, margin trading, derivatives, staking, and borrowing/lending. The SFC is open to exploring these options, though some, such as derivatives and borrowing/lending, may be restricted to professional investors.
Shogun Lin
