Hong Kong expands crypto rules to allow margin financing and perpetual contracts

Hong Kong's Securities and Futures Commission (SFC) has announced significant policy expansions to bolster its position as a crypto hub. Licensed virtual asset trading platforms can now offer perpetual contracts, but strictly to professional investors, contingent upon implementing robust risk management, including leverage limits and strict liquidation mechanisms. Separately, licensed intermediaries are now allowed to offer financing for crypto asset trading using a wider range of collateral, explicitly including Bitcoin and Ether, subject to suitability checks. The SFC's focus for the year is on cultivating market quality, liquidity, and price discovery, rather than rapid expansion. Industry participants view these changes as an incremental step supporting closer integration between traditional securities and crypto assets.

(Source：The Block)