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Hong Kong’s securities regulator aims to present integer plus derivatives trading for nonrecreational investors arsenic portion of a broader strategy to grow merchandise offerings and reenforce the city’s relation successful the planetary integer plus market, section media reported.
Christopher Hui Ching-yu, caput for Financial Services and the Treasury, confirmed the determination connected June 4, according to a study by the English-language paper China Daily HK.
The Hong Kong Securities and Futures Commission (SFC) said that precedence volition beryllium fixed to dependable hazard management, with trades conducted “in an orderly, transparent and unafraid manner,” the study said.
Hong Kong’s reported propulsion into crypto derivatives comes arsenic the planetary integer plus marketplace surpassed $3 trillion successful value, with yearly trading volumes exceeding $70 trillion, according to SFC information cited by China Daily HK.
The regulator earlier this twelvemonth acceptable retired plans to diversify virtual plus products disposable to investors. It has since approved staking services and greenlit virtual plus spot ETFs and futures products. In April 2025, HashKey received approval to connection staking services.
Related: Hong Kong constabulary busts $15M laundering ringing that utilized crypto, 500 slope accounts
Hong Kong to optimize taxation framework
Hui besides reportedly said that Hong Kong is optimizing its taxation model to pull planetary players. Digital assets volition soon suffice for taxation concessions nether Hong Kong’s preferential taxation authorities for funds, single-family offices and carried interest.
The peculiar administrative portion has been promoting its fintech ecosystem crossed the Greater Bay Area and mainland China. Agencies similar Invest Hong Kong and the Hong Kong Key Enterprises Office are offering one-stop services and helping firms navigate licensing, taxation incentives and regulatory requirements.
The efforts look to beryllium bearing fruit. Hui reportedly said that Hong Kong is location to much than 1,100 fintech companies, including 8 licensed integer banks, 4 virtual insurers and 10 regulated virtual plus trading platforms.
Since its archetypal virtual plus argumentation connection successful October 2022, the metropolis has introduced Asia’s archetypal VA futures ETFs, spot ETFs successful April 2024 and futures inverse products successful July 2024, broadening its crypto marketplace offerings.
Hong Kong Bitcoin ETF “Harvest Bitcoin Spot ETF.” Source: Yahoo! FinanceIn September 2024, 2 top-level Hong Kong fiscal regulators co-announced their intent to adopt reporting requirements acceptable by the European Securities and Markets Authority (ESMA) for crypto over-the-counter (OTC) derivatives.
Related: Asian firms ramp up Bitcoin buys: Metaplanet, HK Asia pb charge
Hong Kong prepares for a 2nd virtual plus argumentation statement
In April, Hong Kong revealed that it is preparing to merchandise its 2nd argumentation connection connected virtual assets aboriginal this year, aiming to further integrate Web3 technologies into accepted finance.
Furthermore, successful May, the city’s Legislative Council passed the Stablecoin Bill, paving the mode for a regulated model that could presumption the portion arsenic a planetary person successful integer assets and Web3 development.
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