- Hong Kong to let licensed crypto exchanges access global trading liquidity.
- SFC, HKMA advance new crypto dealer and stablecoin licensing frameworks.
- Licensed exchanges can now list tokens without a 12-month track record rule.
Hong Kong’s Securities and Futures Commission (SFC) plans to ease restrictions for licensed crypto trading platforms, allowing them to connect local traders with their global order books. The regulator’s chief executive, Julia Leung, announced the change on Monday during Hong Kong Fintech Week, adding that a formal circular detailing the new rules would be released later in the day.
The new policy, as reported by Bloomberg, marks a departure from the existing “ringfenced” system, which limits trades to within Hong Kong. Under the upcoming framework, licensed exchanges will be permitted to link with global liquidity, bringing digital-asset trading rules closer to those governing traditional financial products.
Shift in Digital Asset Strategy
The regulatory update forms part of Hong Kong’s ongoing three-year effort to position itself as a major hub for digital assets. Since introducing its crypto licensing regime, the city has permitted exchange-traded products tracking Bitcoin and Ether, and has developed controls for virtual asset funds.
Despite these measures, overall market activity has remained limited compared to regions like the United States, where authorities have shown increasing openness toward the industry.
Leung noted that the commission has taken a cautious approach and will ease restrictions on global liquidity access once it is confident that investor protection measures are sufficient.
Related: Hong Kong Regulators Tighten Oversight on Listed Firms Buying Bitcoin
New Rules for Brokers and Stablecoin Licensing
Leung added that the SFC is finalizing guidelines for licensing crypto dealers and custodians. Meanwhile, the Hong Kong Monetary Authority (HKMA), the city’s de facto central bank, is expected to issue the first licenses for stablecoin issuers next year.
In a possible next phase, the SFC is also considering whether to allow locally licensed crypto brokers to access international liquidity pools. This change could enable major firms, including Binance and Coinbase, to operate in Hong Kong through a broker license rather than a full exchange license, which requires a longer approval process.
Expanded Token Listing Options
According to the SFC’s updated circular, licensed exchanges will now be able to list new tokens and HKMA-approved stablecoins for professional investors without adhering to the previous 12-month issuance and liquidity track record requirement.
Currently, 11 crypto exchanges hold full SFC licenses, while 49 brokers are authorized to provide virtual asset dealing services under omnibus account arrangements, according to the regulator’s public register.
Related: Hong Kong Approves ChinaAMC Solana ETF As 23 U.S. Spot Filings Stack Up
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
