Hong Kong’s Securities and Futures Commission (SFC) is preparing to introduce virtual asset derivatives trading, initially limited to professional investors, as part of the city’s broader ambition to become a global leader in digital finance.
The announcement, made by Financial Secretary Christopher Hui Ching-yu on Wednesday, highlights Hong Kong’s continued push to broaden access to digital asset products while upholding robust regulatory standards.
Expanding the Toolkit for Institutional Players
According to the SFC, the new derivatives product is designed to allow experienced investors to engage in risk management strategies such as hedging and leveraging, which are common in mature financial markets.
“The product will support efficient risk transfers and boost liquidity in the spot crypto markets,” the SFC stated.
The regulator emphasized that sound risk controls and strict compliance measures will be in place to ensure trading is conducted in a transparent, secure, and orderly manner.
Strengthening Hong Kong’s Crypto Position
This move adds to a string of regulatory updates aimed at enhancing the city’s competitiveness in the global digital asset economy. Earlier this year, the SFC greenlit staking services, allowing investors to earn yield from locked digital assets—another signal of growing institutional support for the sector.
Additionally, Hong Kong recently saw the launch of its first approved crypto fund, targeting $100 million in assets under management.
A Step Toward Broader Inclusion?
While the upcoming derivatives market is limited to professional investors, the SFC has hinted that further product expansions may include retail investors once adequate protections are in place.
As jurisdictions worldwide weigh how to regulate digital assets, Hong Kong’s structured and phased approach could position it as a leading hub for crypto finance in Asia.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/hong-kong-to-launch-virtual-asset-derivatives-for-professional-investors/