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Yeon Woo Lee

Hong Kong’s securities regulator unveiled several new initiatives on Wednesday aimed at further developing the city’s virtual asset sector while strengthening investor safeguards.
The announcements by the Securities and Futures Commission (SFC) coincided with Consensus 2026, a major cryptocurrency conference running this week at the Hong Kong Convention and Exhibition Centre, attended by industry figures such as Binance CEO Richard Teng and Solana Foundation president Lily Liu.
“[At Consensus last year] we unveiled Aspire, a road map for us to develop the crypto market,” SFC CEO Julia Leung Fung-yee told the conference. “[This year], we will also deliver a widening of products and services.”
The first initiative will allow licensed virtual asset brokers to offer margin financing to clients with strong credit profiles. Existing rules for securities margin financing would apply, with added safeguards such as limiting collateral to bitcoin and ethereum to account for volatility.
A high-level framework for virtual asset perpetual contracts will also be launched, with access restricted to professional investors and strict rules applied on transparency, risk controls and fair platform management.
“These are very light examples of how to bring traditional finance and digital finance together, and we are experimenting [with] that,” said Eric Yip Chee-hang, the SFC’s executive director heading the intermediaries division.

Yip likened Hong Kong’s virtual asset ecosystem to a shopping mall, with the new initiatives acting as the “shops and goods” that attract users.
The regulator will also permit affiliates of virtual asset platforms to act as market makers on the platform, provided that effective conflict of interest safeguards were in place.
In addition, the regulator plans to introduce a “digital asset accelerator” to foster innovation and improve engagement between the SFC and market participants. Yip said the commission issued a tender on Wednesday seeking interest from service providers to help design a communication mechanism.
Leung said the SFC wanted more collaboration and that it was asking industry officials for their views as it finalised the new initiatives.
“We will together work out something which will protect investors in the first place, but at the same time, can move the industry forward,” Leung said.
Even amid Beijing’s tighter restrictions on cryptocurrencies, Hong Kong’s efforts to solidify its position as a global digital hub seemed unaffected.
“Bringing modern financing to the digital asset ecosystem is [an example of] leveraging our existing strength [as a global financial hub],” Yip said.

Beijing recently extended its ban on onshore real-world asset (RWA) activities and imposed new requirements for offshore initiatives, which now need approval from relevant authorities. The rules also barred the issuance of yuan-pegged offshore stablecoins without authorisation.
Chief Executive John Lee Ka-chiu said at the opening of the conference that the Hong Kong Monetary Authority planned to issue the first batch of stablecoin issuer licences next month.
Financial Secretary Paul Chan Mo-po said the authority would only issue a small number of licences, ensuring that licensees had real-world use cases, a credible and sustainable business model, as well as strong regulatory compliance capabilities.
“We see stablecoins as a practical tool for addressing the pain points in the real economy, particularly in payments and settlements,” Chan said.
Online broker Futu Group, which offers trading of stocks and virtual assets, said in a statement that the SFC’s new measures “actively respond to market expectations for enhanced asset efficiency and liquidity”.
“Of particular note is the introduction of cross-collateralisation between virtual assets and traditional securities, which allows investors to utilise leverage tools to participate in virtual asset trading,” Futu said.
“This will further integrate Web2 and Web3 finance, significantly boost market liquidity, and provide both institutional and individual investors with a richer array of investment options and risk management tools.”


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Cryptocurrency

The first initiative will allow licensed virtual asset brokers to offer margin financing to clients with strong credit profiles


The first initiative will allow licensed virtual asset brokers to offer margin financing to clients with strong credit profiles.


Hong Kong bridges traditional and digital finance worlds with new virtual asset initiatives

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The first initiative will allow licensed virtual asset brokers to offer margin financing to clients with strong credit profiles

The first initiative will allow licensed virtual asset brokers to offer margin financing to clients with strong credit profiles