The Securities and Futures Commission (SFC) of Hong Kong has introduced a comprehensive new regulatory framework significantly expanding the scope of virtual asset (VA) trading services for licensed intermediaries. The new guidelines, structured in alignment with the ASPIRe Roadmap, allow licensed brokers to offer virtual asset financing services to their securities margin clients.
A key development is the explicit permission for licensed intermediaries to provide financing for crypto asset trading, with Bitcoin (BTC) and Ether (ETH) now qualifying as acceptable collateral. This expansion is subject to rigorous client suitability checks and internal risk controls, with the regulator applying risk management standards comparable to traditional margin lending. The SFC framed this as a controlled method to bolster professional market activity without compromising core investor safeguards.
Simultaneously, the SFC has established a high-level, principles-based framework permitting licensed Virtual Asset Trading Platforms (VATPs) to offer crypto perpetual contracts, but exclusively to professional investors. Platforms must enforce strict controls on leverage, establish clear margin requirements, implement orderly liquidation processes, and enhance product disclosures. The framework is tied to firm-level controls and ongoing supervisory oversight.
SFC Executive Director of Intermediaries, Dr. Eric Yip, described the moves as a structured development approach. In a synopsis from Consensus Hong Kong 2026, Yip emphasized a "principles-based model" for leveraged products requiring strong risk management, highlighting valuation, margining, liquidation protocols, and insurance-fund governance as core design areas.
The regulator also linked these initiatives to a broader 2026 agenda prioritizing market quality, liquidity, and price discovery. Yip stated the SFC's focus is "liquidity—cultivating market depth, strengthening price discovery, and building investor confidence." The commission provided clarified rules for when affiliated entities may act as market makers on licensed platforms, targeting conflicts of interest and data security while aiming to narrow spreads and improve transparency.
Market participants welcomed the changes. HashKey Group researcher Tim Sun noted the measures help licensed exchanges access broader market depth through compliant channels. Futu Group executive Sherry Zhu stated the updates support closer integration between traditional securities infrastructure and regulated crypto products.
