Hong Kong has significantly increased its initiatives to establish itself as a leading digital asset hub. The Securities and Futures Commission (SFC) has announced plans to introduce trading in virtual asset derivatives targeted at professional investors.
According to a report by China Daily dated June 4, 2025, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu emphasized that this step is essential for enhancing the city’s global competitiveness in the digital asset market.
The SFC has committed to implementing robust risk management strategies to ensure that transactions are executed in an orderly, transparent, and secure manner.
🚨 HONG KONG PLANS TO LEGALIZE #BITCOIN & CRYPTO DERIVATIVES TRADING! 🇭🇰
ASIA’S ALL-IN ON BITCOIN BULL RUN! 💪 pic.twitter.com/1BwQfkWeJh — Marzell (@MarzellCrypto) June 5, 2025
The proposed product is expected to facilitate efficient risk transfer, boost liquidity in the underlying spot market—where cryptocurrencies are traded with immediate payment and delivery—and allow experienced investors to leverage and hedge their positions.
Furthermore, Hui mentioned that the Financial Services and the Treasury Bureau is preparing a second policy statement on virtual assets, which will outline future policies.
Active Development of Virtual Assets Since October 2022
This initiative follows the release of the Hong Kong SAR government’s initial policy statement on virtual asset development in October 2022, which outlined its strategy for building a vibrant crypto ecosystem.
Earlier this year, the SFC expressed intentions to expand the range of virtual asset products and services available to various investor types. As part of these efforts, the SFC allowed staking services for virtual assets, enabling investors to earn returns.
In April, the SFC authorized two licensed trading platforms to offer staking services under specific conditions. This move was accompanied by the introduction of two SFC-approved spot exchange-traded funds (ETFs) that were allowed to engage in staking activities.
Hong Kong SFC Approves Staking Services for Licensed Platforms
In April 2025, the SFC officially permitted licensed virtual asset trading platforms to provide staking services, reinforcing Hong Kong’s position as a top crypto hub in the Asia-Pacific region. The announcement was made during a keynote speech by SFC Executive Director Christina Choi at the 2025 Hong Kong Web3 Festival, where she highlighted the transformative potential of blockchain technology in finance.
