In brief
- Hong Kong's SFC plans to introduce virtual asset derivatives trading for professional investors to boost competitiveness in the global digital asset market.
- Virtual assets will qualify for tax concessions to attract large-scale international fintech companies to establish operations in Hong Kong.
- The move follows recent approvals for staking services and virtual asset ETFs, with the SFC estimating $70 trillion in annual global virtual asset trading volumes.
Hong Kong could soon offer virtual asset derivatives trading for professional investors.
This news, reported by China Daily, comes as the Hong Kong securities regulator announces plans to introduce the option as part of its plan to expand product offerings while ensuring risk is kept under control.
Security is an important part of this focus as the Securities and Futures Commission, or SFC, points out it will ensure trades are carried out "in an orderly, transparent and secure manner."
According to Hong Kong treasury chief, Christopher Hui Ching-yu, this plan aims to bolster competitiveness in the global digital asset market.
This follows plans shared earlier in the year in which the regulator outlined a move to broaden the range of virtual asset products and services on offer for different investors.
The SFC has permitted staking services for virtual assets in a bid to entice investors with the potential to earn additional returns.
Hui also pointed out that virtual assets will be recognized as qualifying transactions for tax concessions, as part of an attempt to attract more large-scale international fintech companies to set up in Hong Kong.
The newly proposed options will allow for efficient risk transfers and boost liquidity in the underlying spot markets, while supporting professional investors with hedging and leveraging strategies.
Hui said that the treasury plans to lay out the new policy directions in a statement that explores ways to leverage both the advantages of traditional financial services, as well as innovative technologies, that could help the virtual asset market while enhancing security and the flexibility of real economy activities. This is aimed to encourage both local and international business.
In April the SFC approved two licensed virtual asset trading platforms to offer staking services. This was followed by two virtual asset spot exchange traded funds, or ETFs, with revisions to documentation to engage in staking activities.
Hong Kong Regulator Now Lets Regulated Firms Offer Staking Services
Hong Kong's Securities and Futures Commission (SFC) published guidance Monday permitting licensed virtual asset trading platforms to offer staking services, following its efforts to establish the city as a hub for crypto and virtual assets in the Asia-Pacific region. The announcement came during SFC Executive Director Christina Choi's keynote speech at the Hong Kong Web3 Festival 2025, during which she framed how virtual assets could spur innovation in finance. Choi, who leads the SFC's Investme...
“These products have broadened the product diversity of the Hong Kong market, further enhancing Hong Kong’s position as Asia’s leading ETF market,” Hui said.
The SFC estimates the global virtual asset market has shown trading volumes of more than $70 trillion annually.
Edited by Stacy Elliott.
