This development reflects a potential change in the treatment of digital assets within the city’s financial framework. According to local media reports, the Securities and Futures Commission (SFC) is preparing to grant access to crypto derivatives trading for professional investors. This move follows longstanding industry calls for regulation and authorization of derivative products linked to cryptocurrencies.
Derivatives Market Dominates Trading Volumes
While spot trading continues to dominate retail activity in the cryptocurrency markets, derivatives have surged significantly. Data from TokenInsight reveals that derivatives traded nearly $21 trillion during Q1 of this year, compared to approximately $4.6 trillion for spot markets.
Industry players highlight this disparity as a key driver for regulatory attention. Representatives from Deribit, a significant crypto derivatives exchange, previously noted that the absence of clear rules governing these instruments has been a notable gap in Hong Kong’s regulatory landscape.
Regulatory Changes and Stablecoins
The shift in stance also comes following recent legislative amendments. Hong Kong’s Legislative Council recently passed a bill enabling the licensing of stablecoin issuers, marking part of the territory’s effort to establish a more structured regulatory framework for virtual assets.
The Stablecoin Bill will take effect later this year, requiring stablecoin issuers in the region to obtain a license from the Hong Kong Monetary Authority (HKMA). The legislation aims to protect the general public and investors by allowing only licensed firms to advertise such assets.
HKMA officials have stated that the new regulations will create a risk-based, pragmatic, and flexible regulatory regime. This environment is expected to support the sustainable development of Hong Kong’s stablecoin and digital asset ecosystem.