On November 3, 2025, the Securities and Futures Commission ("SFC") issued new guidelines for licensed virtual asset trading platforms to increase global liquidity and diversify offerings.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On November 3, 2025, the Securities and Futures Commission ("SFC") implemented new regulatory measures aimed at bolstering market liquidity and diversifying product offerings for SFC-licensed virtual asset trading platform operators.
A key circular enables Platform Operators to integrate orders with affiliated overseas platforms within a shared order book, thereby optimizing cross-platform order matching and execution, ultimately enhancing investor liquidity and fostering competitive pricing.
The SFC is poised to further examine the potential of allowing licensed brokers to direct client orders to regulated overseas liquidity pools within the same group to facilitate smoother trading practices.
Another circular grants Platform Operators the flexibility to trade in virtual assets without adhering to the 12-month track record requirement for professional investors, while also permitting transactions involving Hong Kong Monetary Authority-licensed stablecoins. Moreover, this circular facilitates the distribution of tokenised securities and digital asset-related investment products, empowering associated entities to provide custody services for these assets.
Ms. Julia Leung, the SFC's Chief Executive Officer, underscored the significance of linking Hong Kong's digital asset ecosystem with global liquidity for sustainable growth, while steadfastly maintaining stringent standards for investor protection and market integrity.
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