Hong Kong Opens Door to Crypto Derivatives in Bid to Rival Global Hubs
Hong Kong plans to introduce virtual asset derivatives trading for professional investors, aiming to expand product offerings while maintaining risk control. The Securities and Futures Commission (SFC) emphasizes orderly, transparent, and secure trading. Treasury chief Christopher Hui Ching-yu states this initiative seeks to enhance competitiveness in the global digital asset market. The SFC has previously allowed staking services for virtual assets to attract investors. Virtual assets will qualify for tax concessions to encourage international fintech companies to establish in Hong Kong. The new derivatives will facilitate efficient risk transfers and improve liquidity, supporting hedging and leveraging strategies for professional investors. The SFC has approved licensed platforms for staking services and introduced virtual asset spot ETFs, enhancing product diversity in Hong Kong's market. The global virtual asset market has annual trading volumes exceeding $70 trillion.
