Hong Kong Regulator Unveils Framework for Crypto Perpetual Contracts and Leveraged Trading
Hong Kong’s Securities and Futures Commission has formalized a new regulatory framework allowing licensed platforms to offer perpetual contracts to professional investors, alongside new guidance permitting intermediaries to provide margin financing for digital asset trades.
Under the rules released Wednesday, perpetual contract providers must implement leverage limits, margin calls, and disclosure protocols, with the SFC retaining ongoing supervisory authority.
On the lending side, the regulator’s circular explicitly lists Bitcoin and Ether as forms of collateral that may be accepted, provided firms conduct suitability assessments and maintain internal risk controls.
The SFC also addressed market-making by affiliated entities on licensed venues, mandating disclosure and surveillance measures to balance liquidity needs with conflict-of-interest safeguards. The policy update marks another step in Hong Kong’s push to establish institutional-grade digital asset markets.
