Hong Kong's securities regulator, the Securities and Futures Commission (SFC), is set to introduce trading in digital asset derivatives specifically for professional investors. This decision, confirmed by the Secretary for Financial Services and the Treasury, Christopher Hui Ching-yu, is part of a broader strategy to enhance product offerings in the city's growing digital asset ecosystem. The move comes as the global digital asset market has recently surpassed a total valuation of over $3 trillion, with annual trading volumes exceeding $70 trillion.
The SFC emphasizes sound risk management, ensuring that derivatives trading will be conducted in a transparent and secure manner. This announcement follows the approval of new services, including staking and several ETFs, which aim to diversify the available virtual asset products.
In addition to the derivatives announcement, Hong Kong is in the process of optimizing its tax framework to attract more international players, offering tax concessions for digital assets under specific investment vehicles. More than 1,100 fintech companies are currently registered in Hong Kong, representing a flourishing technology sector within the city.
Looking forward, Hong Kong plans to roll out its second virtual asset policy statement later this year, aiming to further integrate Web3 technologies within traditional financial systems. Recent legislative efforts, such as the passing of the Stablecoin Bill, indicate Hong Kong's ambition to become a global leader in digital assets and blockchain technology.
The SFC emphasizes sound risk management, ensuring that derivatives trading will be conducted in a transparent and secure manner. This announcement follows the approval of new services, including staking and several ETFs, which aim to diversify the available virtual asset products.
In addition to the derivatives announcement, Hong Kong is in the process of optimizing its tax framework to attract more international players, offering tax concessions for digital assets under specific investment vehicles. More than 1,100 fintech companies are currently registered in Hong Kong, representing a flourishing technology sector within the city.
Looking forward, Hong Kong plans to roll out its second virtual asset policy statement later this year, aiming to further integrate Web3 technologies within traditional financial systems. Recent legislative efforts, such as the passing of the Stablecoin Bill, indicate Hong Kong's ambition to become a global leader in digital assets and blockchain technology.
