Hong Kong is set to ease rules governing crypto trading to encourage greater activity in the city’s digital asset market, Bloomberg reports. Julia Leung, Chief Executive Officer of the Hong Kong Securities and Futures Commission (SFC), announced at the city’s flagship Fintech Week that licensed crypto platforms will soon be able to connect local investors with global order books. A formal regulatory circular detailing the changes is expected to be released later today.
The shift moves Hong Kong away from its current ringfenced model, which only allows trades within the city, aligning crypto trading with rules that govern traditional financial assets. Leung emphasized that the relaxation comes after regulators ensure adequate investor protection. “You can say we are on the tougher side. Once we are sure that we are able to protect the investors, we do relax, as we did with the global liquidity,” she said.
Hong Kong has pursued a three-year push to become a regional leader in digital assets, establishing a licensing regime for crypto platforms, listing exchange-traded products tracking Bitcoin and Ether, and regulating digital-asset funds. Yet, trading activity remains modest compared with global hubs such as the United States. Bloomberg notes that the city hopes the new measures will help attract more international participation.
The SFC is also finalizing rules for licensing crypto dealers and custodians, while the Hong Kong Monetary Authority plans to issue the first licenses for stablecoin issuers next year. In a later phase, the regulator may allow locally-licensed crypto brokers, distinct from exchanges, to access global liquidity pools, potentially enabling major players such as Binance and Coinbase to operate with broker licenses rather than waiting years for full exchange approval.
Currently, 11 crypto exchanges are fully licensed by the SFC, and 49 brokers are authorized to provide virtual asset dealing services under omnibus account arrangements. Among other regulatory relaxations, licensed exchanges can now list new tokens and HKMA-approved stablecoins for professional investors without the previous 12-month track record and liquidity requirements. Bloomberg reporting underscores that Hong Kong’s regulatory pivot is aimed at boosting the city’s competitiveness in the global digital asset landscape while maintaining investor protections.
