Hong Kong Plans Perpetual Contracts in Drive to Accelerate Digital Asset Growth

Speaking at the Consensus Hong Kong conference on 11 Feb, Julia Leung, CEO of the Securities and Futures Commission (SFC), said the regulator would be rolling out a "high-level framework" for virtual asset platforms to offer perpetual contracts. 

Noting that these products are "very new" to the territory, she said that they would be confined to professional investors and "not retail yet".

Margin financing, market making 

Leung also noted a proposal that would allow brokers to offer margin financing to clients with strong credit profiles. 

"The collateral will be backed by both securities as well as virtual assets," she said. Due to the volatility in the crypto market, she added that the SFC was proposing that only Bitcoin and Ether be eligible digital assets and that traditional finance standards would apply to their use.

Additionally, the regulator is reviewing its restrictions on platforms that have been prohibited from acting as their own market makers. 

"We would allow them, provided they have functional independent market-making units and very strong conflict of interest (rules)," Leung said.

Jonathan Crompton, Disputes and Investigations Partner at law firm RPC, told Sandmark that the proposals were significant for the local digital asset industry in expanding the range of permitted assets to align more closely with TradFi rules.

"The devil will be in the detail, though, and the SFC has made clear that 'perps' do not match precisely any products in the TradFi markets. We should expect the SFC to take its time with this framework, and start with a steady, cautious approach," he said.

Innovation Hub

Hong Kong’s Chief Executive, John Lee, also spoke via video to pledge continued work on regulations to promote the sector's development.

"The HKSAR Government is committed to establishing Hong Kong as a global hub for innovation in digital assets," he said in recorded remarks.

The territory’s first explorations in virtual assets date back to 2017, when the SFC rendered an opinion on Initial Coin Offerings (ICOs). The Chief Executive released the government's landmark Policy Statement on the Development of Virtual Assets in late 2022, which led to the SFC’s regulatory ASPIRE roadmap launched in February 2025, designed to bridge TradFi and blockchain innovations.

Small start for stablecoin licenses

Financial Secretary Paul Chan, who also addressed the Consensus conference on 11 Feb, said Hong Kong’s digital asset strategy is "moving forward fast, step-by-step", and confirmed that "only a small number" of stablecoin issuer licenses would be handed out in March in the first round. 

Some industry players have complained about the pace of licensing since the landmark regulatory regime for stablecoins came into effect on 1 Aug 2025. Chan said that the regulators were assessing license applicants who could show "real-world use cases" as well as "credible and sustained business models".

More licensing rules on tap

His comments echoed those of the Chief Executive of the Hong Kong Monetary Authority (HKMA), Eddie Yue, who informed a Legislative Council meeting on 2 Feb that the regulator expects to grant a "very small number" of licences in the initial phase.

Chan added that "more will follow" and that regulators were also finalizing the details of a new licensing regime for digital asset dealers and custody providers, with legislation to be introduced this summer.