Hong Kong is preparing to relax its crypto trading framework to help local platforms tap into global liquidity, the city’s top financial regulator announced Monday at Hong Kong Fintech Week.
Julia Leung, Chief Executive Officer of the Securities and Futures Commission (SFC), said licensed crypto exchanges will soon be allowed to connect their Hong Kong entities with global order books, ending the current system that confines trades within the city.
Since 2022, the city has rolled out a comprehensive licensing regime for exchanges, introduced Bitcoin and Ether-linked exchange-traded products, and approved digital-asset funds. Still, trading activity has lagged behind global leaders like the United States, where President Donald Trump’s administration has taken a friendlier stance toward the crypto industry.
The move marks a significant step in Hong Kong’s ongoing bid to position itself as a regional digital asset hub.
The SFC is also finalizing new frameworks for licensing crypto dealers and custodians, while the Hong Kong Monetary Authority plans to issue the first stablecoin licenses next year.
“You can say we are on the tougher side,” Leung said. “Once we are sure that we are able to protect investors, we do relax — as we did with global liquidity.”
Currently, 11 crypto exchanges hold full SFC licenses, while 49 brokers operate under omnibus account arrangements. The SFC also announced it will ease listing rules for new tokens and HKMA-approved stablecoins, removing the 12-month track record requirement for professional investors.
If approved, the rule could open doors for firms like Binance and Coinbase to enter Hong Kong more easily through brokerage licenses instead of full exchange applications, which can take years to process.
