Hong Kong Stepping Up its Crypto Game: Explores Crypto Derivatives and Margin Lending
Hong Kong is evaluating the introduction of new cryptocurrency and virtual asset products, including crypto derivatives and margin lending for select investors, according to the city’s financial regulator.
Speaking at Coindesk’s Consensus Hong Kong 2025 conference on Wednesday, Securities and Futures Commission (SFC) chief executive Julia Leung stated that these initiatives are under review as part of Hong Kong’s broader push to establish itself as a regional digital asset hub. “We are considering derivative products for professional investors and margin lending for certain customers,” Leung said.
Meanwhile, Hong Kong’s financial secretary Paul Chan announced that regulators have issued nine digital asset trading platform licenses, with eight more applications under review. Additionally, efforts are underway to advance the regulation of stablecoins, Chan added.
Hong Kong first outlined its vision to become a virtual asset hub in 2022, following Beijing’s 2021 ban on all crypto transactions in mainland China. Since then, the city has introduced Asia’s first spot crypto exchange-traded funds (ETFs) and other digital asset initiatives to bolster its position in the global market.
Other financial centers, including Singapore and Dubai, are also striving to become key players in the virtual asset space.
Meanwhile, Bitcoin’s price surged more than 100% last year, reaching an all-time high of $109,071 on January 20, 2025, coinciding with Donald Trump’s inauguration. However, the price has since retracted to around $96,000.
