June 06, 2025
By Our Correspondent
As part of a larger plan to increase product offerings and strengthen the city’s position in the global digital asset market, Hong Kong’s securities regulator wants to allow professional investors to trade digital asset derivatives, according to local media.
China Daily HK, an English-language daily, said on June 4 that Christopher Hui Ching-yu, secretary for Financial Services and the Treasury, had verified the action.
According to the report, the Hong Kong Securities and Futures Commission (SFC) stated that good risk management will be prioritized and that trades will be carried out “in an orderly, transparent, and secure manner.”
According to SFC data quoted by China Daily HK, the global digital asset market has topped $3 trillion in value, with yearly trading volumes topping $70 trillion. This coincides with Hong Kong’s reported push into crypto derivatives.
Earlier this year, the regulator outlined ambitions to diversify the range of virtual asset items that investors might purchase. Since then, it has authorized staking services and given the go-ahead for futures and virtual asset spot ETFs. HashKey was authorized to provide staking services in April 2025.
According to reports, Hui also stated that Hong Kong is making the most of its tax structure in order to draw in foreign businesses. Under Hong Kong’s preferential tax structure for funds, single-family offices, and carried interest, digital assets will soon be eligible for tax breaks.
The Greater Bay Area and mainland China have been exposed to the special administrative region’s fintech ecosystem. Organizations that provide one-stop services and assist businesses in navigating licensing, tax advantages, and regulatory requirements include Invest Hong Kong and the Hong Kong Key Enterprises Office.
It seems that the efforts are paying off. According to Hui, there are over 1,100 fintech businesses in Hong Kong, including 10 regulated virtual asset trading platforms, four virtual insurers, and eight licensed digital banks.
Since announcing its initial virtual asset policy statement in October 2022, the city has expanded its services in the cryptocurrency sector by launching Asia’s first VA futures ETFs, spot ETFs in April 2024, and futures inverse products in July 2024.
Two prominent Hong Kong financial regulators jointly declared in September 2024 that they intended to implement the European Securities and Markets Authority’s (ESMA) reporting guidelines for cryptocurrency over-the-counter (OTC) derivatives.
In an effort to better incorporate Web3 technology into conventional banking, Hong Kong said in April that it is getting ready to publish its second policy statement on virtual assets later this year.
Additionally, the city’s Legislative Council approved the Stablecoin Bill in May, opening the door for a regulated framework that might establish the area as a leader in Web3 development and digital assets worldwide.
