Hong Kong Securities And Futures Commission Issues New Guidance For Licensed Virtual Asset Trading Platforms To Tap Global Liquidity And Diversify Offerings
The Securities and Futures Commission (SFC) today set out its expected standards in two new circulars for SFC-licensed virtual asset trading platform operators (Platform Operators) to take a significant step in tapping global liquidity and broadening the range of their product and service offerings.
As set out in one of the circulars, the SFC allows Platform Operators to combine their orders with those of affiliated overseas virtual asset trading platforms in a shared order book, therefore making its first step under Pillar A (Access) of the ASPIRe roadmap to attract global platforms, order flows and liquidity providers (Notes 1 and 2). With seamless cross-platform order matching and execution, Hong Kong investors stand to benefit from enhanced market liquidity and more competitive pricing, underpinned by robust safeguards to mitigate additional risks.
As the next step, the SFC will explore the feasibility of allowing licensed brokers to direct client orders to regulated overseas liquidity pools within the same group before considering whether to expand the arrangement further.
In another circular, the SFC allows Platform Operators to offer trading in virtual assets without a 12-month track record for professional investors and for Hong Kong Monetary Authority-licensed stablecoins, as well as distribute tokenised securities and digital asset-related investment products, thereby advancing Pillar P (Products) of the roadmap on expanding product offerings and services (Note 3). Additionally, Platform Operators’ associated entities may provide custody services for virtual assets or tokenised securities not traded on their platforms.
“Making steady strides in market liquidity and business offerings is crucial to sustaining the growth momentum of Hong Kong’s digital asset ecosystem,” said Ms Julia Leung, the SFC’s Chief Executive Officer. “Today, we take a significant step to connect with global liquidity, underscoring our commitment to striking a right balance in fostering market innovation and vitality while upholding high standards for investor protection and market integrity.”
Notes:
- Please see the “ASPIRe” roadmap issued on 19 February 2025 for details.
- Please refer to the SFC’s “Circular on shared liquidity by virtual asset trading platforms” issued on 3 November 2025.
- Please refer to the SFC’s “Circular on expansion of products and services of virtual asset trading platforms” issued on 3 November 2025.