Hong Kong’s Securities and Futures Commission has amended its regulations to allow licensed crypto companies to offer perpetual contracts and expanded margin financing to professional investors. The new rules permit Bitcoin and Ethereum to be used as collateral under strict conditions. The regulator stated its 2026 focus is on improving market liquidity and depth rather than pursuing rapid industry expansion.
Hong Kong has introduced significant changes to its crypto rules. Licensed virtual asset trading platforms can now offer cryptocurrency perpetual contracts to professional investors.
These platforms must implement stringent risk management guidelines. They must also continue meeting all regulatory obligations under the amended framework.
The Securities and Futures Commission also issued additional guidance for crypto margin financing. Licensed intermediaries may now accept a wider variety of collateral, including specifically Bitcoin and Ethereum.
This is permitted provided the intermediary conducts sufficient client suitability assessments. Effective internal risk controls must also be maintained.
During an address at the Consensus Hong Kong Conference, SFC Executive Director of Intermediaries Eric Yip outlined the regulator’s priorities. “[This year] it is about liquidity, which involves building market depth, enhancing price discovery, and establishing investor confidence via a strategic combination of expanded access and thoughtful product innovation,” he stated.
The changes are part of an effort to support Hong Kong’s development as a global digital asset center. The new rules aim to increase market liquidity while providing investor protection.
