Hong Kong’s securities regulator will provide global liquidity access to local licensed crypto exchanges. This initiative is part of a broader effort to enhance the city’s position as a regional digital asset hub. The new framework lets approved platforms link Hong Kong clients to overseas order books. The decision comes as rival centers race to attract global crypto firms and capital.
The reform ends Hong Kong’s ringfenced trading model. Under the old approach, virtual asset platforms matched and settled orders only within their respective territories. Access to global order books should give exchanges deeper liquidity and narrower spreads. It may also improve price discovery for major crypto pairs.
Securities and Futures Commission (SFC) Chief Executive Officer Julia Leung announced the policy at Hong Kong Fintech Week. She said the change follows progress on investor protection. Exchanges that connect to overseas affiliates must run pre-trade checks on client assets. They must also use delivery-versus-payment settlement and monitor compliance among foreign entities. Additionally, platforms must clearly explain cross-border risks to local investors.
The SFC is finalizing licensing regimes for crypto dealers and custodians, extending supervision beyond exchanges. Regulators aim to bring over-the-counter brokers and other dealing services into a unified framework. The rules will focus on anti-money-laundering controls, client asset protection, and market integrity.
Authorities are also considering whether locally licensed crypto brokers should access global liquidity pools in a later phase. That route could attract firms such as Binance and Coinbase.
In parallel, Hong Kong’s monetary authority has introduced a stablecoin ordinance that creates a licensing system for fiat-referenced stablecoin issuers. The rules allow the Hong Kong Monetary Authority to supervise reserves, governance, and potential financial stability risks.
Officials expect to grant the first stablecoin licenses under this regime soon. They plan to keep the initial batch limited while they assess how issuers perform under the new rules. legco.gov.hk
Alongside the trading changes, the SFC will permit licensed exchanges to list new tokens and HKMA-licensed stablecoins for professional investors, provided they have a 12-month trading history. It will keep existing due diligence and token admission standards on liquidity, transparency, and regulatory risk.
Furthermore, these measures align with Hong Kong's second policy statement on digital assets, which outlines the LEAP framework. The approach focuses on simplifying legal and regulatory frameworks and promoting the growth of tokenized products, such as digital bonds.
It also supports the tokenization of real-world assets and initiatives towards building blockchain and fintech talent. Policy makers would like to link traditional finance with regulated digital asset markets and preserve the city's status as an international financial center.
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