Hong Kong’s securities watchdog is preparing to roll out digital asset derivatives trading for professional investors, signaling a new phase in the city’s ambition to solidify its standing as a global crypto finance center. The development, reported by China Daily HK on June 4, was confirmed by Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury.
According to the report, the Securities and Futures Commission (SFC) emphasized that risk management will be a top priority. The trading of digital asset derivatives will be conducted in a “transparent, orderly and secure manner,” aligning with global standards.
This regulatory push comes as the global digital asset market hits key milestones. Citing SFC data, China Daily HK reported that the total market value has now exceeded $3 trillion, with annual trading volumes topping $70 trillion—highlighting the sector’s escalating scale and liquidity.
Product Expansion in Motion
The derivatives initiative is part of a broader strategy by Hong Kong’s regulators to diversify the range of virtual asset products available to investors. Earlier this year, the SFC approved staking services and gave the green light to both virtual asset spot exchange-traded funds (ETFs) and futures products.
In April 2025, HashKey became one of the first entities to receive approval to offer staking services under the new regime. This follows a series of significant rollouts: Asia’s first VA futures ETFs launched in October 2022, spot ETFs debuted in April 2024, and futures inverse products were introduced in July 2024.
Tax Perks and Regulatory Support to Attract Global Players
In tandem with product innovation, Hong Kong is also optimizing its tax regime. Hui noted that digital assets will soon be eligible for tax concessions under the city’s preferential tax policies, which already benefit funds, single-family offices, and carried interest.
Support agencies such as Invest Hong Kong and the Hong Kong Key Enterprises Office are providing comprehensive services to help firms with licensing, tax benefits, and compliance matters—especially as they expand into the Greater Bay Area and mainland China.
Fintech Growth Reflects Policy Success
Hong Kong’s fintech ecosystem appears to be thriving under these initiatives. Hui reported that the city now hosts over 1,100 fintech firms, including eight licensed digital banks, four virtual insurers, and 10 regulated virtual asset trading platforms.
As the city continues to position itself as a regional leader in digital finance, the upcoming launch of derivatives trading may serve as a defining moment in its crypto policy evolution.
