Hong Kong SFC Advances Virtual Asset Framework with New Initiatives

Hong Kong's Securities and Futures Commission (SFC) has announced three new regulatory initiatives aimed at enhancing its virtual asset framework. According to NS3.AI, these initiatives include allowing brokers to offer margin financing secured by securities or virtual assets like Bitcoin and Ethereum. Additionally, the SFC has introduced a formal framework that permits platforms to provide perpetual contracts to professional investors, ensuring clear transparency requirements are met. Furthermore, restrictions on affiliated market makers will be lifted, provided they maintain operational independence. The SFC is also encouraging stronger collaboration between the industry and regulators to foster a more robust virtual asset environment.