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Hong Kong will allow licensed platforms to offer crypto perpetual contracts under strict risk controls for professional investors.
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The SFC will limit access to institutions and require strong systems to manage leverage volatility and liquidations.
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Bitcoin and Ether will anchor crypto collateral as regulators aim to bring leveraged trading back onshore.
Hong Kong regulators announced plans to allow crypto perpetual contract trading, a major shift in the city’s digital asset rules. The update came during the Consensus 2026 conference in Hong Kong. The Securities and Futures Commission, led by Julia Leung, outlined how licensed platforms may soon offer leveraged crypto derivatives under strict oversight.
SFC Details New Framework for Perpetual Contracts
Speaking at Consensus 2026, SFC Chief Executive Julia Leung said the regulator will publish a high-level framework for perpetual contracts. According to Leung, licensed trading platforms will gain approval to offer these products under defined risk controls. Notably, access will remain limited to professional and institutional investors, excluding retail participants.
The SFC aims to focus the framework on risk management and fairness. Platforms must demonstrate strong systems to manage volatility and liquidation events. However, the regulator has not released technical requirements yet. Leung said more guidance will follow as the framework develops.
The initiative builds on Hong Kong’s broader virtual asset strategy. The SFC previously released its 2025 roadmap to expand regulated crypto services. That plan targeted market development while keeping investor protection central.
Bitcoin and Ether to Anchor Margin and Financing Plans
Alongside derivatives, the SFC plans to allow crypto-backed financing. Leung said brokers may soon provide financing to clients with strong credit profiles. Notably, collateral may include securities and virtual assets.
However, the regulator will start cautiously. Only Bitcoin and Ethereum will qualify as crypto collateral due to volatility concerns. Leung explained that these assets currently offer the most liquidity and market depth.
Additionally, the SFC plans to permit market-making on licensed platforms. Platforms may use affiliated market makers, but they must prove independence. Strong conflict-of-interest controls will remain mandatory.
Bringing Leveraged Trading Back Onshore
Currently, many Hong Kong traders rely on offshore exchanges for leveraged crypto trading. These platforms operate outside local regulation. As a result, investor protections remain limited.
The proposed framework could shift this activity back to licensed local platforms. Regulated perpetual trading would operate under clear rules and oversight. Notably, Hong Kong already approved spot Bitcoin ETFs and licensed several crypto exchanges.
Since introducing its VATP licensing regime in 2023, the SFC has steadily expanded crypto regulation. The 2025 “ASPIRe” roadmap guided measures like tokenized funds and shared liquidity. The perpetual trading framework adds another regulated layer to Hong Kong’s virtual asset market.
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