The Securities and Futures Commission (SFC) of Hong Kong announced on February 11, 2026, a significant regulatory advancement that will allow licensed platforms to offer leveraged crypto derivatives, specifically perpetual contracts, to professional investors. The announcement was made during the Consensus 2026 conference by SFC CEO Julia Leung and Executive Director of Intermediaries Eric Yip.
The new framework is part of the SFC's broader ASPIRe (Access, Safeguards, Products, Infrastructure and Relationships) roadmap, which has entered a "defining stage" with a current focus on enhancing market liquidity. The regulator outlined three key initiatives: allowing licensed brokers to provide virtual asset margin financing, establishing a high-level framework for licensed trading platforms to offer perpetual contracts, and permitting platforms to use affiliated market makers under strict safeguards.
Initially, access will be restricted to professional investors only, with retail traders excluded from participating in these leveraged products. The eligible assets for both collateral in margin financing and the underlying for perpetual contracts will be limited to Bitcoin (BTC) and Ethereum (ETH), reflecting a cautious, phased approach focused on the largest and most established cryptocurrencies.
Eric Yip emphasized that the margin financing initiative is anchored to the existing securities margin framework, incorporating controls on collateral quality, concentration limits, haircuts, and governance. The goal, as stated by Yip, is to enable "responsible leverage that supports liquidity without undermining financial stability." For perpetual contracts, a principles-based model will require transparent disclosures and strong internal risk management from platforms.
The move is designed to bring crypto derivative trading activity, which currently flows to offshore and often unregulated exchanges, under Hong Kong's supervised jurisdiction. This aims to improve market safety, transparency, and investor protection. The development is a strategic step in Hong Kong's ambition to build a comprehensive virtual asset ecosystem and solidify its position as a leading Asian crypto hub, following earlier approvals for spot Bitcoin ETFs and exchange licenses.
