Hong Kong's financial markets regulator plans to allow crypto derivatives trading for professional investors to expand product offerings in the asset class and strengthen the city's global competitiveness.
The Securities and Futures Commission (SFC) in Hong Kong emphasized risk management and ensuring orderly, transparent, and secure trades for the legalizing of crypto derivatives.
Legalizing crypto derivatives is expected to enhance liquidity in the underlying spot crypto market and support experienced investors with hedging and leverage strategies.
The SFC cited that the cryptocurrency market's annual trading volumes exceeded US$70 trillion in 2024, with crypto derivatives trading volume reaching US$21 trillion in the first three months of 2025, while the spot market handled only US$4.6 trillion.