Hong Kong advances in crypto market: New listings, derivatives and staking on the radar
- Hong Kong seeks crypto leadership.
- New token listings under consideration.
- Derivatives and staking on the radar.
Hong Kong is stepping up its efforts to become a global crypto hub, with an ambitious new roadmap that aims to expand trading options and attract more liquidity providers. Hong Kong’s Securities and Futures Commission (SFC) has announced 12 initiatives to enhance the security, innovation and growth of the crypto market through clear and adaptable regulations.
“The initiatives will simplify access to global liquidity, enable adaptive compliance and security-focused product frameworks, and drive infrastructure upgrades for traditional finance to leverage the efficiencies of blockchain,” he explained.
The SFC’s initiatives span a range of areas, from creating licensing regimes for over-the-counter (OTC) cryptocurrency custody and trading services to exploring new token listings, derivatives trading and staking. The aim is to simplify access to global liquidity, enable security-focused product structures and drive infrastructure upgrades for traditional finance by leveraging the efficiencies of blockchain.
“Under the roadmap, new frameworks to regulate VA OTC and custody services will be developed, while VA product and service offerings will be expanded. Other measures include streamlining operational requirements for VA trading platforms, combating illicit activities, investor education and proactive stakeholder engagement.”
Currently, amid restrictive regulations, Bitcoin and Ethereum are the only cryptocurrencies available for retail trading in Hong Kong through licensed platforms. However, the SFC is considering expanding its regulatory framework to facilitate the listing of new tokens, initially for professional investors. In addition, the regulator is exploring cryptocurrency derivatives trading for professional investors, aiming to facilitate efficient risk transfer.
Staking, a practice that allows investors to participate in validating transactions on blockchain networks and receive rewards for doing so, is also on the SFC’s radar, with the regulator planning a study on establishing requirements for the custody of client assets, as well as mitigating the staking and liquidity risks arising from this practice.
“Following the core principles of investor protection, sustainable liquidity and adaptive regulation, the roadmap itself is a calibrated response to the emerging challenges of the VA market and therefore helps future-proof our ecosystem,” said Eric Yip, Executive Director of Intermediaries at SFC. “The roadmap is not a final destination, but a living blueprint, inviting collective efforts to advance Hong Kong’s vision as a global hub where innovation thrives within barriers,” he added.
With these initiatives, Hong Kong is positioning itself as a leader in the regulation and development of the cryptocurrency market, seeking to attract global companies and investors. At the same time, the country is concerned about ensuring the security and protection of investors, establishing clear and adaptable rules.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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