Hong Kong’s SFC Unveils Vision to Transform Crypto Markets Through Global Liquidity

TLDR

• Hong Kong opens crypto trading to global liquidity under SFC’s new plan.
• SFC allows VATPs to link order books globally, boosting market efficiency.
• New rules let platforms trade stablecoins and tokenised securities safely.
• SFC aligns crypto regulation with traditional markets for long-term growth.
• Hong Kong sets global standard for trusted, scalable digital asset markets.

Hong Kong is set to reshape its crypto trading landscape by strengthening digital asset regulation and unlocking access to global liquidity. The Securities and Futures Commission (SFC) outlined measures at FinTech Week 2025 to connect local platforms with global markets. These changes will form a key part of the city’s roadmap for building a trusted, competitive digital asset ecosystem.

New Global Access Framework for VATPs

The SFC introduced a pivotal change to allow licensed Virtual Asset Trading Platforms (VATPs) to share global order books with overseas affiliates. This move under Pillar A (Access) of the ASPIRe roadmap aims to deepen market efficiency and boost price discovery. Through this access, Hong Kong platforms can achieve tighter spreads and attract more trading volume.

By opening up global liquidity, the SFC intends to transform a previously closed-loop model into one that competes globally. The integration enables greater institutional participation while preserving regulatory supervision under the city’s framework. Hong Kong will also connect brokers to international liquidity pools to expand this initiative further.

This marks a shift from pre-funded, local settlement to cross-border access, which the SFC will regulate with targeted safeguards. These include prefunding at overseas platforms, delivery-versus-payment, and compensation reserves to ensure orderly trading. A joint surveillance mechanism will support these safeguards and maintain transparency across jurisdictions.

Enhancing Product Offerings and Market Infrastructure

The SFC also revealed new measures to widen digital asset product availability for licensed VATPs under the second circular issued the same day. It will waive the 12-month track record requirement for Hong Kong Monetary Authority-regulated stablecoins, limited to professional participants. The SFC will also allow platforms to offer tokenised securities and other related products.

This expansion complements existing rules by enabling platforms to diversify services and attract a broader client base within a regulated perimeter. Associated platform entities may also offer custody for off-platform assets and tokenised securities under clear conditions. These moves aim to create a complete and robust digital asset regulatory framework.

Recent public feedback on joint consultations with the Financial Services and the Treasury Bureau showed support for licensing regimes. The SFC plans to include virtual asset advisory and management in the licensing scope for VA dealers. Custodian licensing will prioritise private key protection and strong operational reliability to ensure a secure environment.

Long-Term Strategy to Build a Sustainable Market

The SFC’s strategy focuses on aligning digital asset regulation with traditional market principles while supporting innovation and scalability. The regulator remains committed to improving blockchain-based clearing and settlement as part of financial infrastructure enhancements. This will strengthen long-term sustainability and trust in the market.

A healthy digital asset market requires diverse products, efficient price mechanisms, and the presence of liquidity providers to maintain market depth. Therefore, the SFC emphasizes building infrastructure that supports scale, interoperability, and global connectivity. Regulatory clarity, risk safeguards, and cross-border standards will define Hong Kong’s approach.

The city’s leadership in applying “same business, same risks, same rules” supports global regulatory harmonisation. Hong Kong’s framework has informed international standards, including the MiCA regulation in Europe and other jurisdictions. This alignment will ensure the local market remains integrated and competitive on the global stage.

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