SFC Clears Path for Crypto Perpetuals and Margin Lending in Hong Kong Hub Push

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Hong Kong’s top financial regulator has authorized two key expansions to its virtual asset regime, permitting both perpetual contract listings and collateral-based margin financing for professional investors.

In a circular published Wednesday, the Securities and Futures Commission confirmed that licensed trading platforms may now list crypto perpetual products if they meet enhanced risk-management standards, including margin collection and automated liquidation systems.

The SFC also opened the door for brokers to offer financing secured by a broader set of assets, with Bitcoin and Ether specifically flagged as acceptable collateral.

The guidance emphasizes rigorous client vetting and ongoing internal oversight. Additional clarity was provided on the role of affiliated firms as market makers, with the SFC requiring governance structures and surveillance mechanisms to prevent conflicts. The moves reinforce Hong Kong’s strategy to build a regulated yet competitive crypto ecosystem.