Hong Kong’s Securities and Futures Fee (SFC) has introduced a significant coverage shift, allowing licensed bitcoin and digital asset exchanges to combine their buying and selling techniques with world order books.
This transfer is meant to boost liquidity and value discovery for native buyers, representing probably the most vital regulatory rest for the reason that metropolis’s renewed push for digital asset adoption.
From isolation to integration
Beforehand, Hong Kong’s licensed exchanges operated underneath a closed settlement system, limiting buying and selling to home customers.
The up to date framework introduces a “shared order guide,” enabling cross-border matching and tighter value alignment.
SFC Chief Government Julia Leung said the regulator can also be finalizing licensing regimes for brokers, custodians, and stablecoin issuers, with the primary stablecoin licenses anticipated subsequent yr. Leung commented:
“You’ll be able to say we’re on the more durable aspect. As soon as we’re positive that we’re capable of shield the buyers, we do calm down, as we did with the worldwide liquidity.”
Balancing entry and regulation
The SFC might ultimately prolong world liquidity entry to domestically licensed brokers, providing a doubtlessly faster route for main gamers like Binance or Coinbase to function in Hong Kong.
At present, town has 11 totally licensed exchanges and 49 approved brokers.
Licensed exchanges will even be capable to listing new tokens and SFC- or HKMA-approved stablecoins for skilled buyers and not using a prior one-year monitor document.
Market participation lags behind
Regardless of these adjustments, Hong Kong’s buying and selling volumes and investor participation stay properly beneath these within the U.S. and different main Asian markets.
In keeping with Chainalysis, Hong Kong ranked fifth globally for per-capita digital asset adoption in 2025, however didn’t place within the high 20 in absolute phrases, lagging behind India, Vietnam, and Pakistan.
Specialists voice cautious optimism
Trade specialists see the combination of worldwide liquidity as a pivotal improvement, however stress that belief and sturdy regulation are important.
David Kemmerer, CEO of CoinLedger, commented on the significance of integration over mere curiosity in digital belongings:
“It isn’t that Asia didn’t have an curiosity in crypto buying and selling. They did however they didn’t have the best integration.”
Tax knowledgeable Kevin Marshal warned that cross-border buying and selling introduces operational and authorized complexities:
“The principle situation stays whether or not buyers will belief this framework to affix this system.”
Marshal added that regulatory arbitrage and settlement danger stay issues as town seeks to draw extra world participation.