Hong Kong is taking steps to allow regulated trading of crypto perpetual contracts for the first time. Securities and Futures Commission chief executive Leung Fung Yee revealed the plan during the Consensus 2026 conference. She said the move is part of building a complete virtual asset ecosystem under clear rules.
The SFC will publish a high-level framework that lets licensed trading platforms offer perpetual contract products. These contracts are leveraged derivatives that track assets like Bitcoin without an expiry date. Until now, many Hong Kong traders have used offshore exchanges to access similar products outside local oversight.
Who Can Trade The New Perpetual Products
Under the early plan, perpetual contracts will be available only to professional investors, not to the general public. The first phase will likely cover only Bitcoin and Ether, which are the largest and most liquid crypto assets. This cautious rollout aligns with the SFC’s broader approach to complex crypto products.
Only virtual asset trading platforms that hold an SFC license will list these contracts. Also, platforms must meet strict requirements for risk management systems, margin regulations, liquidations, and transparency. Reducing the likelihood of abrupt failures that could harm investors and undermine confidence is the regulator’s goal.
Shift From Offshore Platforms To Regulated Markets
Many Hong Kong traders now use offshore exchanges for perpetual swaps and other leveraged derivatives. Those platforms often sit outside Hong Kong law, so users face higher counterparty and enforcement risks. By establishing a local framework, the SFC aims to return this activity to supervised markets.
The change fits into a broader push to make Hong Kong a leading hub for digital assets. The city already licenses virtual asset trading platforms and has approved spot bitcoin ETFs and other crypto products. Now, working on perpetual contracts, margin financing, and market-making rules signals a next phase focused on derivatives.
The perpetual contract plan sits alongside new measures on margin financing and affiliated market makers. Brokers will be able to offer financing backed by Bitcoin and Ether as collateral to qualified clients. Licensed platforms may also use related market-making units if they manage conflicts of interest.
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