Hong Kong is making significant strides in the digital asset sector, aiming to position itself as a leading global hub. The Securities and Futures Commission (SFC) is evaluating the approval of new cryptocurrency and virtual asset products, including derivatives and margin lending, for certain investors. Julia Leung, CEO of the SFC, stated, “We are considering derivative products for professional investors, margin lending for certain customers,” at the Coindesk’s Consensus Hong Kong 2025 conference. (reuters.com)
This move is part of Hong Kong’s broader strategy to enhance its competitiveness in the digital asset market. Financial Secretary Paul Chan announced that the city’s regulators have issued nine digital asset trading platform licenses, with eight more applications under consideration. The government is also working to advance the regulation of stablecoins, aiming to provide a robust framework for digital asset transactions. (reuters.com)
Investor Identification, Introduction, and negotiation.
In May 2025, Hong Kong’s legislature passed a landmark stablecoin bill, establishing a licensing framework for fiat-referenced stablecoin issuers. This legislation requires entities issuing stablecoins in Hong Kong or backed by Hong Kong dollars to obtain a license from the Hong Kong Monetary Authority (HKMA). The bill outlines requirements for reserve asset management, redemption procedures, and risk controls, aiming to safeguard public and investor interests. (reuters.com)
The SFC is also considering new licensing regimes for over-the-counter (OTC) trading in virtual assets and for custody services, aiming to boost market efficiency and investor protections. Derivative trading and margin financing options for virtual assets are under review, reflecting Hong Kong’s commitment to expanding its digital asset ecosystem. (investing.com)
HashKey Group, Hong Kong’s largest licensed cryptocurrency exchange, announced the launch of its first Digital Asset Treasury (DAT) fund with an initial target of $500 million. This multi-currency fund aims to mirror the growing trend of public companies accumulating cryptocurrency assets to benefit from rising token prices and a more favorable regulatory landscape. (reuters.com)
Standard Chartered, alongside blockchain gaming developer Animoca Brands and telecom company HKT, formed a joint venture named Anchorpoint Financial. The venture aims to apply for a license to issue stablecoins in Hong Kong, shortly after the city enacted new stablecoin legislation. This collaboration signifies the integration of traditional financial institutions with the evolving digital asset landscape in a regulated Hong Kong market. (reuters.com)
These developments underscore Hong Kong’s proactive approach to digital asset regulation and its ambition to become a leading center for virtual assets. The city’s initiatives reflect a broader global trend of integrating digital assets into mainstream financial systems, balancing innovation with regulatory oversight to ensure market stability and investor protection.
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