On February 11, 2026, the SFC launches trading initiatives to boost the digital asset market in Hong Kong. They allow VA brokers to offer VA financing to margin clients, set out a framework for VATPs to develop VA-related leveraged products, and permit VATP affiliates to act as market makers.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On February 11, 2026, the Securities and Futures Commission ("SFC") issued new guidance to extend virtual asset ("VA") services to margin financing for licensed brokers providing VA dealing services (VA brokers). Additionally, it set out a high-level framework to guide virtual asset trading platforms ("VATPs") in developing proposals for VA-related leveraged products for professional investors.
As part of its ASPIRe Roadmap initiative, the SFC is now allowing VA brokers to offer VA financing to their securities margin clients, provided there is sufficient collateral and robust investor safeguards. This will enable margin clients with strong credit profiles to participate more actively in VA trading, thereby enhancing market liquidity in a risk-controlled manner.
For the first time, the SFC has outlined a high-level framework for VATPs to develop perpetual contracts, leveraged instruments for professional investors. The aim is to support VATPs' risk management strategies and deepen liquidity in the underlying spot market, with a focus on transparent product design, clear disclosures, and robust operational controls for these products.
To further drive VA trading activity in Hong Kong, the SFC permits affiliates of licensed VATPs to act as market makers on their platforms, subject to strong safeguards against conflicts of interest. This provides an additional avenue for liquidity to licensed VATPs.
According to Dr. Eric Yip, the SFC’s Executive Director of Intermediaries, the structured development approach based on the ASPIRe Roadmap is crucial for scaling Hong Kong's digital asset market. The targeted measures to enhance liquidity demonstrate the SFC’s commitment to developing the market in a sustainable and collaborative manner.
The SFC will continue to monitor the implementation closely and engage with stakeholders to ensure these measures promote a safe and competitive market environment in Hong Kong.
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