The move rounds out Hong Kong’s aggressive buildout of a regulated virtual asset ecosystem. In the past 18 months, the city has:
The SFC says approved products will facilitate efficient risk transfers, boost liquidity in spot markets, and support experienced investors with new hedging and leverage strategies.
Hong Kong’s derivatives pivot reflects a broader race to attract institutional crypto capital. Singapore and Dubai already permit regulated crypto futures, and the absence of similar tools has limited Hong Kong’s ability to draw hedge funds and offshore desks.
Ten virtual asset trading platforms (VATPs) are now licensed to operate in the city, and other platforms have hinted at launching derivatives desks once regulations are in place.
The SFC has recently approved two ETF issuers to revise documentation to include staking, while staking services on licensed exchanges were cleared in April under specific conditions. Together, these moves suggest a more open and modular future for Hong Kong’s crypto market architecture.
Hui also revealed that the government is preparing a second policy statement on virtual assets. The new statement will explore how traditional finance and decentralized innovation can be combined to support real-world economic activities, an agenda that includes expanding tax concessions to recognize virtual asset transactions by funds, single-family offices, and private equity managers.
These policies aim to enhance the flexibility and security of Hong Kong’s financial system and attract fintech firms globally.
Should a derivatives rulebook and licensing regime occur before the end of 2025, that would complete the three-legged stool of Hong Kong’s crypto policy: spot ETFs, stablecoins, and derivatives, giving global investors the tools they need to trade, hedge, and settle digital assets onshore.
Whether this deepening embrace of crypto finance will rattle Beijing or entice it to rethink its own mainland ban remains to be seen. But Hong Kong’s message is clear: it’s building a Web3 future with its own playbook, one licensed derivative at a time.
