Hong Kong’s Crypto Trading Framework Set for Major Relaxation as Regulators Aim to Boost Activity and Attract Global Players

Hong Kong to Connect Local Crypto Platforms with Global Order Books

Hong Kong is set to loosen restrictions on cryptocurrency trading, allowing licensed platforms to link local clients with international liquidity pools, the city’s top financial regulator announced at Hong Kong Fintech Week.

Julia Leung, Chief Executive Officer of the Securities and Futures Commission (SFC), said a regulatory circular detailing the changes is expected later today.

Currently, trades are confined within the city under a ringfenced model.

The new rules will align digital asset trading with the framework that governs traditional financial products, providing local platforms with access to global markets for the first time.

How Will This Change Affect Local Trading

Leung said,

“You can say we are on the tougher side. Once we are sure that we are able to protect the investors, we do relax — as we did with the global liquidity.”

The SFC is also finalising licensing rules for cryptocurrency dealers and custodians, while the Hong Kong Monetary Authority (HKMA) plans to issue the first stablecoin licenses next year.

In the next phase, the regulator is considering extending global liquidity access to locally-licensed crypto brokers, not just exchanges, though no specific timeline has been set.

If implemented, this could attract major international players such as Binance Holdings and Coinbase Global, which could operate under a broker license rather than applying for a full exchange licence — a process that can take years.

How Many Platforms Will Benefit

Currently, 11 exchanges hold full SFC licences, while 49 brokers operate under omnibus account arrangements, allowing them to provide virtual asset dealing services.

In addition, licensed crypto exchanges will now be able to list new tokens and HKMA-approved stablecoins for professional investors without meeting the usual 12-month track record and liquidity requirements.

Is Hong Kong Catching Up to Global Hubs

Hong Kong’s three-year drive to become a regional digital asset hub has included a comprehensive licensing regime, exchange-traded products linked to Bitcoin and Ether, and approved digital-asset funds.

Yet trading volumes have remained muted compared with global leaders like the United States, where the industry has seen a more accommodating stance.

The city is also introducing its second major policy statement on digital assets, called the “LEAP” framework, focusing on legal clarity, ecosystem growth, real-world adoption, and talent development.

Plans include stablecoin licensing, tokenisation of government bonds and ETFs, and expanding real-world asset tokenisation into sectors such as metals and renewable energy.

Professionals in crypto and hedge funds are increasingly supporting Hong Kong’s residential rental market, which continues to face weak demand from traditional sources, signalling the growing interconnection between digital assets and broader economic activity.

This regulatory evolution could mark a turning point for Hong Kong, offering local platforms the chance to plug directly into international markets while maintaining investor protections.