Hong Kong Regulated Crypto Trading Tools Expanded as SFC Allows Margin Financing

Hong Kong regulated crypto trading tools are being expanded as the Securities and Futures Commission loosened rules to allow licensed brokers to provide margin financing for digital-asset trading while setting guardrails for more leveraged products to deepen market liquidity.

The SFC said brokers may extend financing to clients with strong credit profiles and adequate collateral, initially limited to bitcoin and ether but potentially expanded later.

It also issued a high-level framework for licensed trading platforms to develop proposals for perpetual contracts aimed at professional investors, with requirements on product design, disclosure and operational controls.

Separately, the SFC said functionally independent affiliates of licensed platforms may act as market makers, subject to safeguards to manage conflicts of interest.