Hong Kong’s Securities and Futures Commission (SFC) will soon introduce virtual asset derivatives trading for professional investors. The move is part of efforts to boost product diversity and reinforce robust risk controls, according to a China Daily report. The Hong Kong crypto derivatives move is part of the city’s drive to boost its competitiveness in the global digital asset market.
Christopher Hui, Secretary for Financial Services and the Treasury, said,
“These products have broadened the product diversity of the Hong Kong market, further enhancing Hong Kong’s position as Asia’s leading ETF market.”
The SFC shared that it will focus on prioritising robust risk management measures. The aim is to ensure that trading is orderly, transparent, and secure.
It also stated that the proposed product is designed to facilitate more efficient risk transfers, increase liquidity in spot markets where cryptocurrencies are traded for instant delivery and payment, and aid experienced investors in implementing hedging and leveraging strategies.
In light of the evolving virtual asset landscape, Hui said the Financial Services and the Treasury Bureau is preparing a second policy statement on virtual assets, which will outline the government’s future policy directions for the sector.
He added that the upcoming statement will explore how to harness the strengths of traditional financial services and emerging technologies to drive growth in the virtual asset market.
It will also aim to improve the security and flexibility of real economy activities and encourage broader adoption of virtual asset technologies by both local and international businesses.
Moreover, he said virtual assets will be classified as qualifying transactions under Hong Kong’s preferential tax regimes for funds, single-family offices, and carried interest, as part of the measures. The goal is to attract sizeable international fintech players to establish a presence in Hong Kong.
Hong Kong’s fintech ecosystem, including the soon-to-be-implemented Hong Kong crypto derivatives for investors, has grown to include more than 1,100 firms, including eight licensed digital banks.
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