Hong Kong Sets Framework for Crypto Perpetual Contracts

Hong Kong’s Securities and Futures Commission (SFC) has taken a huge step in regulated crypto trading. On February 11, 2026, the SFC approved margin financing and perpetual contracts for licensed brokers. Moreover, these products are available to professional investors only.

The move allows professional traders to access leveraged trading for Bitcoin and Ether. It marks a great expansion beyond the previously limited spot trading options in Hong Kong’s regulated crypto market.

Limited Leverage and Risk Rules

Under the new framework, leverage is capped at 3x for margin loans. Brokers must also provide strict risk disclosures to clients. These measures aim to protect investors and maintain market stability while offering access to more advanced trading instruments.

The SFC’s approval builds on Hong Kong’s virtual asset licensing framework established in 2023. That system was designed to attract institutional capital while ensuring regulatory compliance in the fast-growing crypto market.

SFC’s Impact on Market Liquidity

The announcement has sparked discussion across Hong Kong’s crypto community. Many professional investors welcomed the decision, noting that it could boost liquidity and trading activity in Asia. Analysts say this may help the city remain competitive as a regional crypto hub.

However, some experts have raised caution about potential risks. Leveraged trading can increase volatility, and losses can multiply quickly. The framework currently does not allow retail investors to access these products, keeping risk exposure limited to professionals.

SFC’s Outlook for the Future 

The SFC’s new rules highlight Hong Kong’s focus on regulated crypto innovation. By allowing advanced products like margin financing and perpetual contracts, the city aims to attract institutional players while keeping safeguards in place.

Observers say this could also influence other Asian markets. Regulators in nearby regions may look to Hong Kong as a model for balancing market growth with investor protection.

For now, the focus is on professional traders. If the framework proves successful, it could pave the way for further development of regulated crypto products in Hong Kong.

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