Hong Kong advances crypto derivatives and Web3 regulation

Hong Kong advances digital asset regulation, enabling perpetual contracts and crypto-backed financing for institutional investors, strengthening its Web3 leadership.

Hong Kong is reinforcing its status as a global hub for digital assets and Web3 innovation. Government leaders have reiterated their commitment to nurturing crypto communities and businesses, emphasizing the city's unique advantages under the 'one country, two systems' framework. To support sustainable growth, Hong Kong is developing a comprehensive regulatory framework for its Web3 ecosystem. At the recent Consensus Hong Kong conference, the Securities and Futures Commission (SFC) announced plans to permit licensed trading platforms to offer perpetual contracts and crypto-backed financing, exclusively for institutional and professional investors. The SFC's upcoming guidelines will also address BTC and ETH collateralized lending and market-making activities. These initiatives aim to boost liquidity, attract global capital, enhance investor protection, and reduce dependence on offshore exchanges, further establishing Hong Kong as a leader in regulated digital asset services.