Hong Kong Opens Global Crypto Access Through SFC Approval
- Hong Kong allows local exchanges to share global liquidity under new SFC guidance.
- Stablecoins approved by the HKMA are no longer in need of a 12-month trading history.
- The move positions Hong Kong as a digital bridge between Eastern and Western countries.
Hong Kong’s Securities and Futures Commission (SFC) will allow local crypto trading platforms to share global order books with overseas affiliates as part of its strategy to strengthen the city’s role as a digital-asset hub. The regulator announced two circulars on Monday aimed at improving liquidity and expanding product offerings for licensed crypto exchanges operating within the territory.
According to the SFC, locally licensed crypto platforms may connect to global liquidity pools after obtaining written approval from the regulator. This change enables international order sharing between Hong Kong-based and overseas trading platforms for the first time.
SFC Chief Executive Officer Julia Leung said the integration allows investors to “tap global market liquidity efficiently with better price discovery and more competitive prices” during her address at the Hong Kong Fintech Week.
This adjustment departs from the city’s existing system, where all trades were pre-funded and settled domestically. The new approach connects Hong Kong’s crypto sector more closely with global markets, increasing its competitiveness in an evolving financial landscape.
Regulatory Reforms and Market Development
A separate circular from the SFC removed the rule requiring tokens and stablecoins to have a 12-month trading history before being offered to professional investors. The exemption applies to those assets already approved by the Hong Kong Monetary Authority (HKMA). The reform opens the door for new token offerings and faster market innovation within licensed exchanges.
Leung characterized the change in policy as a step in Hong Kong’s wider ambition to “create a trustworthy, globally competitive, and sustainable ecosystem.” She pointed out that keeping the scales even between new developments and the protection of investors is still a key factor in the city’s regulatory objectives. According to her, progress in “market liquidity and business offerings” is essential for sustaining Hong Kong’s growth in digital finance.
The SFC’s fresh direction comes at a time when the competition among countries to gain crypto business is getting stronger, and after a change of attitude from the US. Hong Kong’s strict but flexible framework is the opposite of the total prohibition on cryptocurrency trading by Mainland China, offering an option for compliance and innovation.
Growing Institutional Confidence and Industry Participation
Standard Chartered CEO Bill Winters told delegates at the Hong Kong Fintech Week that the city’s leadership in tokenized money could reshape global trade settlement. He highlighted ongoing pilots in tokenized deposits and the creation of a Hong Kong-dollar-backed stablecoin as major developments for cross-border transactions. Winters said innovations such as deposit tokenization and local stablecoins could serve as “a medium of exchange for international trade.”
Related: Hong Kong Drafts New Rules for Corporate Crypto Treasuries
His remarks follow last year’s partnership between Standard Chartered’s Hong Kong branch, Animoca Brands, and HKT to apply for a license from the HKMA to issue a Hong Kong-dollar stablecoin. The joint venture is among five participants in the HKMA’s stablecoin sandbox.
According to the SFC’s latest register, 11 crypto exchanges currently hold full operating licenses, while 49 brokers are authorized to offer virtual-asset services through omnibus accounts. This regulatory clarity positions Hong Kong as a bridge between East and West in digital finance, enabling local platforms to compete on the global stage while ensuring market integrity.
Will these measures help Hong Kong cement its status as Asia’s leading digital-asset center and attract global crypto institutions to its evolving ecosystem?
