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Hong Kong Set to Allow Crypto Derivatives Trading
Crypto derivatives are a much larger market than spot trading.
Jun 5, 2025, 5:20 a.m.
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What to know:
- Hong Kong's securities regulator plans to allow professional investors to trade crypto derivatives, expanding the territory's virtual asset market.
- The crypto derivatives market is significantly larger than spot trading, with $21 trillion in volume in the first quarter compared to $4.6 trillion in spot volume.
- Hong Kong's legislative council recently passed a bill to license stablecoins, further advancing its virtual asset regulations.
The Securities and Futures Commission, Hong Kong’s securities regulator, is planning to allow professional investors to trade crypto derivatives, marking a significant expansion of the territory’s virtual asset market offerings, according to a report from China Daily.
Crypto derivatives are a considerably larger market than spot trading. Data from TokenInsight shows that the crypto derivatives market pushed through $21 trillion in volume for the first quarter of the year, compared to $4.6 trillion in spot volume.
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Stakeholders in the industry have long called for Hong Kong to license crypto derivatives trading.
Speaking to the South China Morning Post earlier this year, Jean-David Péquignot, chief commercial officer of Deribit, one of the largest derivatives exchanges, said crypto derivatives rules were a missing piece of legislation for Hong Kong.
Hong Kong's legislative council, its parliamentary body, recently passed a bill that would allow for the licensing of stablecoins in the city.
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- The DeFi Education Fund tells FCA that regulatory obligations should apply only where there is “unilateral control” over user assets or transactions.
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- DEF warns that applying trading platform and prudential requirements and full money-laundering laws to automated protocols would be structurally incompatible.
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