Hong Kong’s Securities and Futures Commission (SFC) announced new rules that allow licensed brokers to offer margin financing for digital assets.
The regulator also introduced a basic framework that allows approved trading platforms to create perpetual contract products for professional investors.
Brokers can provide virtual asset financing to existing securities margin clients if those clients have enough collateral and a solid credit record. For now, only Bitcoin and Ethereum can be used as collateral.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
What is an NFT? (Explained with Animations)
The SFC also explained how licensed trading platforms may develop leveraged perpetual contracts. Access to these products will stay limited to professional investors.
Affiliated companies of licensed platforms may act as market makers. They must follow rules that prevent conflicts of interest, keep operations separate, and protect system security.
Speaking at Consensus Hong Kong 2026, Eric Yip, the SFC’s executive director of intermediaries, said the regulator’s digital asset work has reached a “defining stage” under its ASPIRe roadmap, which covers Access, Safeguards, Products, Infrastructure, and Relationships.
He noted that the margin financing rules follow the same basic structure used for securities margin accounts. They include controls on collateral quality, exposure limits, valuation haircuts, and internal oversight.
Yip said the aim is to support “responsible leverage that supports liquidity without undermining financial stability”. He added that perpetual products will follow a principles-based approach that requires clear disclosures and strong risk controls.
Hong Kong recently announced plans to propose a new crypto regulatory framework in 2026, with a focus on firms offering crypto advisory services. What did Secretary for Financial Services and the Treasury, Christopher Hui, say? Read the full story.
