Hong Kong’s Securities and Futures Commission (SFC) has introduced new rules allowing licensed brokers to offer virtual asset margin financing, using only Bitcoin and Ether as collateral. The regulator also outlined a framework for trading platforms to provide leveraged perpetual contracts to professional investors, aiming to boost market liquidity under its strategic roadmap.
Hong Kong’s Securities and Futures Commission said it will allow licensed brokers to provide virtual asset margin financing. It also outlined a framework for trading platforms to offer perpetual contracts to professional investors.
The guidance states brokers may extend financing to securities margin clients with sufficient collateral and strong credit profiles. Initially, only Bitcoin and Ether will be eligible as collateral for these loans.
The high-level framework restricts access to perpetual contracts to professional investors. Affiliates of licensed platforms can act as market makers, subject to specific conflict-of-interest guardrails and security controls.
In a keynote speech, the SFC’s executive director of intermediaries, Eric Yip, said the regulator’s digital asset strategy is in a “defining stage.” “This year’s focus is on liquidity — cultivating market depth, strengthening price discovery and building investor confidence,” Yip stated.
He said the margin financing initiative is anchored to the existing securities margin framework, which includes controls on collateral quality and concentration limits. Yip added that the goal is to enable “responsible leverage that supports liquidity without undermining financial stability.”
These rules build on Hong Kong’s broader crypto policy rollout. Authorities recently announced plans to submit a draft ordinance covering crypto advisory services in 2026.
Separately, the Hong Kong Monetary Authority (HKMA) said it is preparing to grant its first stablecoin issuer licenses in March. Initial approvals are expected to be limited in number.
