What You Need to Know

• The Securities and Futures Commission of Hong Kong plans to allow professional investors to engage in crypto derivatives trading, which will enhance the region’s virtual asset market offerings.
• The scale of crypto derivatives is substantially greater than that of spot trading, achieving a volume of $21 trillion in the first quarter compared to $4.6 trillion for spot trades.
• The local legislative body has also approved a bill for the licensing of stablecoins, taking significant steps forward in its virtual asset regulatory framework.

According to a report by China Daily, stakeholders have long advocated for the licensing of crypto derivatives in Hong Kong. Data from TokenInsight reveals this massive market potential. Jean-David Péquignot, the Chief Commercial Officer of Deribit, emphasized earlier this year that crypto derivatives regulation was essential for Hong Kong. Furthermore, CoinDesk highlights the recent legislative developments regarding stablecoin licensing.