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Crypto Journalist
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Hong Kong is preparing to relax its crypto trading framework to help local platforms tap into global liquidity, the city’s top financial regulator announced Monday at Hong Kong Fintech Week.
Key tips:
- Hong Kong will allow licensed crypto exchanges to connect to global order books, ending its current isolated business model.
- The move is part of a broader plan to attract crypto companies and align digital asset rules with traditional financial markets.
- Regulators are also preparing new licenses for stablecoin sellers, custodians and issuers to strengthen the city’s digital financial ecosystem.
Julia Leung, Chief Executive Officer of the Securities and Futures Commission (SFC), said that licensed crypto exchanges will soon be allowed to connect their Hong Kong entities with global order books, ending the current system that confines trades in the city.
The change, detailed in a regulatory circular expected later today, aligns rules for digital assets with those governing traditional financial products, according to to a Monday report from Bloomberg.
Hong Kong Intensifies Crypto Push But Trails US in Business Activity
The move marks a significant step in Hong Kong’s ongoing bid to position itself as a regional digital asset hub.
Since 2022, the city has developed a comprehensive licensing regime for exchanges, introduced Bitcoin and Ether-linked exchange products, and approved digital asset funds.
However, business activity has been delayed by world leaders such as the United States, where the administration of President Donald Trump has taken a more friendly stance towards the crypto industry.
“You could say we’re on the tougher side,” Leung said. “Once we are sure that we are able to protect investors, we will relax – as we did with global liquidity.”
The SFC is also finalizing new frameworks for crypto dealer and custodian licenses, while the Hong Kong Monetary Authority plans to issue the first stablecoin licenses next year.
In future phases, regulators may allow local licensed crypto brokers, not just exchanges, to access international liquidity pools.
If approved, the rule could open the door for companies like Binance and Coinbase to enter Hong Kong more easily through brokerage licenses instead of full exchange applications, which can take years to process.
Currently, 11 crypto exchanges hold full SFC licenses, while 49 brokers operate under omnibus account agreements.
The SFC also announced that it will ease the listing rules for new tokens and stablecoins approved by the HKMA, eliminating the 12-month track record requirement for professional investors.
Hong Kong announces new digital asset policy
Hong Kong has presented his second major political statement on digital assets, placing stablecoin regulation and tokenization of real-world assets (RWA) at the heart of its strategy to become a global fintech hub.
The new “LEAP” framework focuses on legal clarity, ecosystem growth, real-world adoption and talent development, with a stablecoin licensing regime set to launch on August 1.
The government also plans to regulate tokenized government bonds and ETFs, paving the way for secondary market trading of these products on licensed digital asset platforms.
It aims to expand tokenization efforts in sectors such as metals and renewable energy, highlighting use cases such as gold and solar panels.
As reported, professionals working in the crypto and hedge fund sectors are play a key role in supporting Hong Kong’s residential rental marketwhich continues to struggle due to weak traditional demand sources.
