Hong Kong Securities and Futures Commission (SFC) CEO Julia Leung stated that the organization is working to create a more comprehensive regulatory environment for virtual assets. In the short term, three new measures will be announced, starting with preparations to allow trading platforms to offer perpetual contracts. Additionally, Hong Kong brokers will in the future be permitted to provide financing services using Bitcoin and Ethereum as collateral.
Julia Leung mentioned at the “Consensus 2026” conference held in Hong Kong on Wednesday that the SFC will soon unveil a “high-level regulatory framework” to allow platforms to offer perpetual contracts. However, initially, participation will be limited to “professional investors,” and retail investors will not be allowed to access these products for now.
Julia Leung emphasized that the future framework will focus on risk management, requiring platforms to maintain high transparency, manage volatility in funding rates and automatic liquidation risks, and ensure fair trading mechanisms for clients.
Another exciting development for the market is that the SFC will permit brokers to offer financing to creditworthy clients. The most notable breakthrough is that, in addition to traditional securities, Bitcoin and Ethereum will be recognized as qualified collateral for the first time.
Leung explained that considering the high volatility of virtual assets, the SFC has adopted a cautious approach to initial steps. In the first phase, only Bitcoin and Ethereum, which have the largest market capitalization and liquidity, will be accepted as collateral.
Regarding market liquidity, the SFC also plans to relax regulations, allowing trading platforms to provide liquidity through “independent market-making departments,” provided that platforms establish strict conflict-of-interest prevention mechanisms and ensure that market-making units operate with genuine independence and have comprehensive rules in place.
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