Hong Kong Needs to Wager on $70 Trillion Crypto Derivatives Market

[ad_1] Hong Kong’s monetary markets regulator plans to permit crypto derivatives buying and selling for skilled buyers, aiming to broaden product choices within the asset class and strengthen the town’s international competitiveness, China Each day reported.

Crypto Derivatives in Hong Kong

The Securities and Futures Fee (SFC), which oversees the broader monetary companies sector within the autonomous jurisdiction, emphasised that its precedence is threat administration and making certain trades are executed “in an orderly, clear and safe method.”

Based on the regulator, legalising crypto derivatives would improve liquidity within the underlying spot crypto market and help skilled buyers with hedging and leverage methods.

The crypto derivatives market is considerably bigger than the spot market when it comes to dimension. The SFC cited that the cryptocurrency market’s annual buying and selling volumes exceeded US$70 trillion in 2024. Information from TokenInsight reveals that crypto derivatives buying and selling quantity reached US$21 trillion within the first three months of 2025, whereas the spot market dealt with solely US$4.6 trillion.

You may additionally like: Why 50,000 Retail Merchants are Dashing Again to Hong Kong Markets

The proposal to legalise crypto derivatives buying and selling kinds a part of the SFC’s broader plan to broaden the vary of services and products round digital property, unveiled earlier this yr. The regulator has already permitted crypto staking companies and authorised two platforms to supply them.

Positioning Itself on the Crypto Map

Hong Kong, certainly one of Asia’s monetary powerhouses, is actively positioning itself as a cryptocurrency hub within the area, backed by a transparent regulatory framework. The jurisdiction allowed the buying and selling of crypto exchange-traded funds (ETFs) in late December, though demand for these funds stays modest in comparison with these listed in the USA.

“These merchandise have broadened the product range of the Hong Kong market, additional enhancing Hong Kong’s place as Asia’s main ETF market,” mentioned Christopher Hui, Secretary for Monetary Providers and the Treasury of Hong Kong.

In the meantime, the SFC has additionally launched a streamlined licensing regime for crypto platforms within the metropolis. The brand new framework replaces the earlier two-phase evaluation course of with a single, complete exterior analysis.