Hong Kong Approves Margin Lending and Perpetual Contracts for Digital Assets
The Securities and Futures Commission of Hong Kong will permit authorized brokers to provide margin financing for digital assets and establish guidelines for cryptocurrency perpetual contracts targeting professional investors.
On Wednesday, the Securities and Futures Commission of Hong Kong announced that authorized brokers will be permitted to offer margin financing for virtual assets and released a comprehensive framework enabling trading platforms to make perpetual contracts available to professional investors.
According to the newly released guidance, brokers will have the authority to offer virtual asset financing services to securities margin clients who possess adequate collateral and demonstrate robust credit standings. In the initial phase, Bitcoin (BTC) and Ether (ETH) will be the only digital assets approved for use as collateral.
The financial watchdog has also established a comprehensive high-level framework designed to enable licensed virtual asset trading platforms to create leveraged perpetual contracts. These products will be available exclusively to professional investors.
Platform affiliates that hold licenses will be permitted to function as market makers, provided they comply with conflict-of-interest protections, maintain functional independence and implement appropriate security controls.
These new regulatory measures bring structured leverage products and enhanced liquidity mechanisms into Hong Kong's regulated cryptocurrency market while maintaining restrictions on retail investor participation.
Liquidity focus under the ASPIRe roadmap
During a keynote address delivered at Consensus Hong Kong 2026, Eric Yip, who serves as the SFC's executive director of intermediaries, stated that the regulator's approach to digital assets has reached a "defining stage" within its Access, Safeguards, Products, Infrastructure and Relationships (ASPIRe) roadmap.
This year's focus is on liquidity — cultivating market depth, strengthening price discovery and building investor confidence
Eric Yip, SFC executive director of intermediaries
He explained that the margin financing initiative is grounded in the existing securities margin framework, incorporating safeguards for collateral quality, concentration limits, haircuts and governance structures.
According to Yip, the objective is to facilitate "responsible leverage that supports liquidity without undermining financial stability," noting that perpetual contracts will be governed by a principles-based model that mandates transparent disclosures and robust internal risk management.
Regarding affiliate market makers, Yip emphasized that the protective measures are structured to "narrow spreads, improve fairness and transparency."
Broader legislative rollout continues
These most recent measures represent a continuation of Hong Kong's comprehensive cryptocurrency policy implementation.
Authorities revealed on Jan. 31 their intention to submit a draft ordinance governing crypto advisory services in 2026, in addition to updates connected to the Organisation for Economic Co-operation and Development's (OECD) Crypto-Asset Reporting Framework (CARF).
The Hong Kong Monetary Authority (HKMA) announced on Feb. 2 that it is in the process of preparing to issue its first stablecoin issuer licenses in March, with early approvals anticipated to be limited in number.