Hong Kong Moves to Allow Crypto Perpetual Contracts

Highlights:

• Hong Kong to allow crypto perpetual contracts for institutional investors only.
• Brokers can offer crypto-backed loans using BTC and ETH as collateral.
• Market makers must have conflict-of-interest safeguards and independent trading desks.

Hong Kong’s financial regulator is taking a significant move to boost the city’s crypto framework. At the Consensus 2026, SFC CEO Julia Leung confirmed that new regulations will be introduced soon, allowing perpetual contracts to institutional investors. These rules aim to expand product offerings and enhance the market structure.

The Securities and Futures Commission (SFC) will introduce a high-level framework of licensed platforms. Under this setup, only institutional clients can trade perpetual contracts during the initial phase. These derivatives will start with Bitcoin and Ether. The objective of the approach is to manage risk while allowing more advanced tools.

This marks a major milestone in SFC’s plan to become a digital finance hub. It builds on their 2025 roadmap that includes product expansion and innovation in relation to virtual assets. Hong Kong is also exploring crypto-backed lending and tighter oversight for market makers alongside this move.

🇭🇰 HONG KONG TO ALLOW CRYPTO PERPETUAL TRADING

Hong Kong’s SFC chief says the city is working on rules to permit perpetual contracts on trading platforms.

This would finally allow investors to trade leveraged crypto derivatives in HK rather than through offshore exchanges. pic.twitter.com/kLnchomPtp

— Coin Bureau (@coinbureau) February 11, 2026

Crypto Loans and Market Making to Gain Traction

Leung also revealed that brokers will soon be able to provide financing backed by digital assets. The regulator will enable eligible clients to borrow against a mix of traditional securities and crypto. Initially, Bitcoin and Ether will become the only eligible virtual assets for collateral. The move assists in bridging the gap between traditional and digital finance.

Platforms that aim to deliver these services will have to demonstrate risk resilience. Banking institutions require robust evaluations of clients and proper liquidation tools. This aids in managing the volatility of virtual assets that serve as collateral. With the combination of crypto and securities, Hong Kong expands its collection of financial tools within regulated settings.

At the same time, market-making platforms must ensure transparency. SFC mandates companies to separate their trading desks from operational systems. They should also be able to handle internal conflicts effectively. The purpose of these measures is to create investor confidence and to provide institutions with more liquidity support.

Strategy Fits Into Broader Crypto Push

Hong Kong is striving to achieve a complete digital asset stack. The city has already licensed exchanges, approved spot ETFs, and promoted tokenized funds. The city is enhancing its institutional offering now by introducing perpetual contracts and margin tools.

The plan does not include retail access for now. According to the regulator, such products are too risky for the general public. The long-term ambition, however, is to establish a stable market that embraces global finance players.

The regulators are optimistic that licensed services will pull away users from unlicensed offshore platforms. Regulators are also advancing stablecoin licensing. The Hong Kong Monetary Authority plans to give out the first licenses in March 2026. Authorities are reviewing a small number of applications for the initial rollout.

Big News from Hong Kong! 🇭🇰✨

The HKMA expects to issue the first batch of stablecoin licenses in March. As the review process nears completion, Hong Kong is setting a global benchmark for compliant digital payments.

For StayLP, this is a game-changer. A regulated stablecoin…

— StayLP (@StayLP_World) February 2, 2026

Meanwhile, the Insurance Authority is considering new regulations that would enable insurers to gain crypto exposure. The proposed guidelines implement strict restrictions and emphasize risk control.