admin New proposals target professional investors, enhance liquidity and risk management
Hong Kong is preparing to roll out virtual asset derivatives trading for professional investors, according to a recent announcement by the city’s Securities and Futures Commission (SFC). The plan, aimed at expanding Hong Kong’s virtual asset product offerings, is part of a broader initiative to strengthen the city’s role in the global digital finance ecosystem.
The SFC emphasised that any new instruments will be introduced with strong safeguards to ensure trading is conducted in a secure, transparent, and orderly environment. This approach aligns with Hong Kong’s ongoing efforts to balance innovation with regulatory oversight in the fast-evolving digital asset space.
Christopher Hui Ching-yu, the city’s Secretary for Financial Services and the Treasury, said the introduction of derivatives products will support professional investors through improved hedging and leveraging strategies. These instruments are also expected to enhance liquidity in spot markets, facilitating more efficient risk transfers.
Policy Reforms to Attract Global Fintech Investment
This initiative follows earlier regulatory moves, including the approval of staking services for virtual assets and amendments allowing exchange-traded funds (ETFs) to engage in staking activities. These developments, Hui noted, are designed to improve product diversity and cement Hong Kong’s status as a leading ETF hub in Asia.
To further attract international participation, the government plans to classify virtual assets as qualifying transactions for tax concession purposes. The Treasury is expected to release a policy statement detailing how traditional financial expertise and emerging technologies can be integrated to support the digital asset economy.
In April, two licensed virtual asset trading platforms received approval to offer staking services, followed by the launch of two spot ETFs. These measures, according to Hui, reflect Hong Kong’s commitment to building a flexible and secure digital finance framework.
The SFC reports that the global virtual asset market records over $70 trillion in annual trading volumes—an indicator of the significant opportunity Hong Kong seeks to tap into as it moves forward with these proposals.
Magazine 
