Hong Kong’s securities regulator aims to introduce digital asset derivatives trading for professional investors as part of a broader strategy to expand product offerings and reinforce the city’s role in the global digital asset market, local media reported.
Christopher Hui Ching-yu, secretary for Financial Services and the Treasury, confirmed the move on June 4, according to a report by the English-language newspaper China Daily HK.
The Hong Kong Securities and Futures Commission (SFC) said that priority will be given to sound risk management, with trades conducted “in an orderly, transparent and secure manner,” the report said.
Hong Kong’s reported push into crypto derivatives comes as the global digital asset market surpassed $3 trillion in value, with annual trading volumes exceeding $70 trillion, according to SFC data cited by China Daily HK.
The regulator earlier this year set out plans to diversify virtual asset products available to investors. It has since approved staking services and greenlit virtual asset spot ETFs and futures products. In April 2025, HashKey received approval to offer staking services.
Related: Hong Kong police busts $15M laundering ring that used crypto, 500 bank accounts
Hong Kong to optimize tax framework
Hui also reportedly said that Hong Kong is optimizing its tax framework to attract international players. Digital assets will soon qualify for tax concessions under Hong Kong’s preferential tax regime for funds, single-family offices and carried interest.
The special administrative region has been promoting its fintech ecosystem across the Greater Bay Area and mainland China. Agencies like Invest Hong Kong and the Hong Kong Key Enterprises Office are offering one-stop services and helping firms navigate licensing, tax incentives, and regulatory requirements.
The efforts appear to be bearing fruit. Hui reportedly said that Hong Kong is home to more than 1,100 fintech companies, including eight licensed digital banks, four virtual insurers and 10 regulated virtual asset trading platforms.
Since its first virtual asset policy statement in October 2022, the city has introduced Asia’s first VA futures ETFs, spot ETFs in April 2024, and futures inverse products in July 2024, broadening its crypto market offerings.
In September 2024, two top-level Hong Kong financial regulators co-announced their intent to adopt reporting requirements set by the European Securities and Markets Authority (ESMA) for crypto over-the-counter (OTC) derivatives.
Related: Asian firms ramp up Bitcoin buys: Metaplanet, HK Asia lead charge
Hong Kong prepares for a second virtual asset policy statement
In April, Hong Kong revealed that it is preparing to release its second policy statement on virtual assets later this year, aiming to further integrate Web3 technologies into traditional finance.
Furthermore, in May, the city’s Legislative Council passed the Stablecoin Bill, paving the way for a regulated framework that could position the region as a global leader in digital assets and Web3 development.
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