Securities and Futures Commission said it will permit licensed brokers to provide virtual asset margin financing and outlined a framework for trading platforms to offer perpetual contracts to professional investors.
Under the guidance, brokers may extend digital asset financing to securities margin clients with sufficient collateral and strong credit profiles, with only Bitcoin and Ether initially eligible as collateral.
“This year’s focus is on liquidity — cultivating market depth, strengthening price discovery and building investor confidence,”
Said SFC executive director of intermediaries, Eric Yip.
Yip said the margin financing initiative will align with the existing securities margin framework, including controls on collateral quality, concentration limits and governance standards to support responsible leverage.
He added that the goal is to enable “responsible leverage that supports liquidity without undermining financial stability,” while perpetual contracts will follow a principles-based model with transparent disclosures and robust internal risk management, and following the announcement the Hang Seng Index was unchanged at $XX.
Affiliates of licensed platforms will be allowed to act as market makers under strict conflict-of-interest guardrails and operational independence requirements designed to narrow spreads and improve transparency.
The measures form part of Hong Kong’s broader crypto legislative rollout, which includes a planned draft ordinance on crypto advisory services in 2026 and preparations by the Hong Kong Monetary Authority to grant its first stablecoin issuer licences in March.
At the time of reporting, Bitcoin price was $67,616.11.