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Hong Kong’s securities regulator will allow crypto derivatives trading

05.06.2025 - 09:00

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2 min

What’s new? Hong Kong’s securities regulator, the Securities and Futures Commission (SFC), plans to allow professional investors to trade cryptocurrency-based derivatives. The move will significantly expand the supply of virtual assets in the local market.

Material by China Daily

What else is known? The cryptocurrency derivatives market is much larger than the spot market. According to TokenInsight, it exceeded a volume of $21 trillion in the first quarter of 2025, while the spot trading figure was only $4,6 trillion.

Industry representatives have long urged the authorities of the Special Administrative Region of the People’s Republic of China to allow trading in derivative crypto products. Earlier this year, Jean-David Péquignot, the commercial director of Deribit, a leading crypto derivatives exchange, noted that the lack of regulation of this market segment was an omission.

Kraken exchange buys derivatives platform NinjaTrader

Kraken exchange buys derivatives platform NinjaTrader

The exchange also reported a 19% year-over-year revenue growth

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In April, the SFC allowed licensed crypto exchanges and exchange-traded fund (ETF) issuers to offer staking services as part of its strategy to make Hong Kong a regional crypto hub.

In May, the Hong Kong Legislative Council finally passed the stablecoin bill, which requires issuers of fiat currency-pegged assets to obtain a central bank license, keep customer assets separate from their own, and comply with AML standards.

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