Hong Kong is expanding investor access to virtual assets as part of its bid to become Asia’s leading digital asset hub, its financial regulator announced on Wednesday. The Securities and Futures Commission (SFC) will introduce new licensing regimes for over-the-counter crypto trading and custody services, aiming to enhance market efficiency and investor protection. The regulator is also reviewing derivative trading and margin financing options for virtual assets.
The move comes as Hong Kong accelerates its crypto ambitions following Beijing’s ban on cryptocurrency transactions in mainland China in 2021. Since then, the city has launched Asia’s first spot crypto exchange-traded funds and issued nine virtual asset trading platform licenses. On Tuesday, Bullish Group became the 10th licensed exchange.
Speaking at the CoinDesk Consensus Hong Kong 2025 conference, Financial Secretary Paul Chan emphasized the city’s commitment to fostering a thriving digital asset ecosystem. Industry leaders at the event expressed optimism about the global regulatory environment, particularly under the new crypto-friendly U.S. administration.
Bitcoin, which hit a record high of $109,071 on January 20—the day of U.S. President Donald Trump’s inauguration—has since pulled back to around $96,000. With both Hong Kong and Washington advancing crypto regulations, some view the city as a testing ground for Beijing’s evolving stance on digital assets.
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