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Financemagnates

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Hong Kong Wants to Bet on $70 Trillion Crypto Derivatives Market

  • 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.

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