Hong Kong plans to ease its cryptocurrency trading rules, aiming to allow licensed platforms to connect with global liquidity pools and thereby encourage more trading activity within the city.
The Securities and Futures Commission (SFC) announced that these changes will permit local exchanges to merge their local order books with global ones. This move is also expected to expand the range of digital asset products that these platforms can offer, including tokenized securities and stablecoins approved by the Hong Kong Monetary Authority.
These regulatory adjustments are part of Hong Kong's broader strategy to establish itself as Asia's leading cryptocurrency hub, while simultaneously ensuring strict investor protections remain in place. The city has already implemented a licensing regime for exchanges and has approved exchange-traded fund (ETF) products that track Bitcoin and Ethereum.
SFC Chief Executive Julia Leung stated, "Today, we take a significant step to connect with global liquidity. Making steady strides in market liquidity and business offerings is crucial to sustaining the growth momentum of Hong Kong’s digital asset ecosystem."
Hong Kong’s Liquidity Liftoff: From Ringfence to Global Relevance
November 2025 — In a landmark move, Hong Kong’s Securities and Futures Commission (SFC) dismantled one of Asia’s most restrictive crypto barriers on November 3, granting licensed virtual asset trading platforms… pic.twitter.com/YLhqRADc2s
— Coby Vu | FVM Research (@Cobyvu8820) November 3, 2025
Crypto Platform Operators Can Connect to Global Order Books
By enabling the combination of local and global order books, the SFC believes that Hong Kong investors will benefit from enhanced market liquidity and more competitive pricing. These advancements will be implemented while maintaining robust safeguards to mitigate additional risks.
Previously, all orders were required to be pre-funded and settled within Hong Kong's borders. Local crypto platforms that wish to connect their order books will need to obtain written approval from the SFC to proceed.
Crypto Firms Can Offer More Trading Services
The SFC has also announced that crypto platform operators will be permitted to offer trading in digital assets without requiring a 12-month operating track record. This new permission specifically applies to trading for professional investors and for stablecoins currently licensed by the Hong Kong Monetary Authority (HKMA).
Furthermore, the SFC is now allowing platform operators to distribute tokenized securities and other digital asset-related investment products.
In addition, the SFC stated that companies affiliated with these trading platforms will be able to provide customers with custody services for their digital assets or tokenized securities, even if those assets are not listed or traded on the platforms themselves.
Hong Kong's Position in Crypto Adoption
According to the Chainalysis Global Crypto Adoption Index, Hong Kong is currently ranked fifth globally in terms of cryptocurrency adoption.
Hong Kong has been actively pursuing a three-year strategy to become a regional leader in digital assets. This initiative has already led to the establishment of a licensing regime for crypto platforms, the listing of exchange-traded products (ETPs) that track BTC and ETH, and the ongoing oversight of crypto funds.