Hong Kong Expands Virtual Asset Trading and Regulation

Hong Kong Expands Virtual Asset Trading and Regulation

New Licensing Regimes for Virtual Assets

Hong Kong’s Securities and Futures Commission (SFC) has announced new licensing regimes for over-the-counter (OTC) trading in virtual assets and custody services. This initiative aims to enhance market efficiency and investor protections.

Review of Derivative Trading and Margin Financing

The regulator is also reviewing derivative trading and margin financing options for virtual assets. The announcement follows a speech by SFC CEO Julia Leung at the CoinDesk Consensus Hong Kong 2025 conference.

Efforts to Establish a Virtual Asset Trading Hub

Hong Kong introduced its plan to become a virtual asset trading center in 2022. This move followed Beijing’s 2021 ban on all cryptocurrency transactions in mainland China. Since then, Hong Kong has launched Asia’s first spot crypto exchange-traded funds (ETFs) and issued nine virtual asset trading platform (VATP) licenses.

Regulatory Advances on Stablecoins

The government is progressing on stablecoin regulations, introducing legislation to encourage further innovation. Financial Secretary Paul Chan emphasized these efforts as part of a commitment to building a thriving digital asset ecosystem.

New Crypto Exchange License Issued

Bullish Group, which owns CoinDesk, became the tenth licensed crypto exchange in the city. This milestone was announced just ahead of the Consensus Hong Kong conference.

Global Crypto Market Outlook

Consensus Hong Kong 2025 is the first major industry gathering since the inauguration of U.S. President Donald Trump. Industry leaders expressed optimism about the evolving regulatory environment in the United States. Binance CEO Richard Teng noted a shift in institutional investor sentiment, with many now actively considering crypto investments.

Bitcoin’s Price Movement

Bitcoin’s price surged more than 100% last year, reaching an all-time high of $109,071 on January 20, the day of Trump’s inauguration. However, it has since pulled back to approximately $96,000.

Hong Kong’s Role in China’s Crypto Landscape

Hong Kong is seen as a key player in China’s exploration of virtual asset regulations. While Beijing maintains strict controls, Hong Kong operates under a “one country, two systems” framework, allowing it to serve as a financial sandbox and conduit for digital asset activities.

“Hong Kong Expands Virtual Asset Trading and Regulation” “Hong Kong Expands Virtual Asset Trading and Regulation” “Hong Kong Expands Virtual Asset Trading and Regulation”