Hong Kong Unveils New Rules To Allow Crypto Margin Financing And Perpetual Contracts

Hong Kong financial authorities have announced new rules to expand the scope of product offerings, allowing the integration of crypto margin financing and perpetual contracts into the local virtual assets market.

According to the SFC’s circular, the financial watchdog will permit VA brokers to extend credit to margin clients with strong credit profiles and sufficient securities collateral, under Pillar P of its Access, Safeguards, Products, Infrastructure and Relationships (ASPIRe) roadmap.

This will allow eligible margin clients to “increase their participation in VA trading, which can enhance the liquidity of Hong Kong’s VA market. At the same time, this can also facilitate the development of VA financing in a risk-controlled environment.”

“Under the ASPIRe roadmap, Pillar P reflects the SFC’s commitment to expanding the scope of product offerings, including Perps. This initiative aims to deepen market liquidity, broaden risk management tools for investors, and further strengthen Hong Kong’s position as a leading global virtual asset hub,” the watchdog affirmed.

Therefore, the framework requires platform operators to have robust management measures and transparent processes governing valuation, margining, collateralization, and liquidation management.

Yip affirmed that Hong Kong’s crypto asset development has entered a “defining stage, shaped by the SFC’s ASPIRe roadmap that outlines a future-proof regulatory framework aimed at deepening market quality, resilience, and global competitiveness.”

He emphasized this year’s focus on liquidity, “cultivating market depth, strengthening price discovery, and building investor confidence through a strategic blend of expanded access and responsible product innovation.”

Notably, Yip highlighted the SFC’s greenlight of crypto margin financing, which will be anchored to the existing securities margin financing framework. He noted that it will provide clarification on the use of crypto assets as collateral, “enabling responsible leverage that supports liquidity without undermining financial stability.”

In addition, he also outlined the new high-level framework for leveraged perpetual contracts for professional investors, which sets out a principles-based model.

He concluded that “liquidity does not emerge organically; it must be cultivated through openness, strong governance, and a purposeful regulatory design. Through targeted access reforms, product expansion, and structured innovation support, Hong Kong is well-positioned to become a leading global digital assets centre where liquidity thrives on a foundation of integrity, resilience, and international cooperation.”