The Securities and Futures Commission (SFC) in Hong Kong has announced plans to permit professional investors to engage in crypto derivatives trading. This move signals a major expansion of the region's virtual asset offerings, as reported by China Daily. Crypto derivatives represent a significantly larger market than traditional spot trading; data from TokenInsight indicates that the volume for crypto derivatives hit $21 trillion in the first quarter of this year, contrasting sharply with the $4.6 trillion recorded for spot trading. Industry advocates have long pressed for the legalization of such derivatives trading in Hong Kong. Jean-David Péquignot, chief commercial officer at Deribit, a leading derivatives exchange, highlighted earlier this year that comprehensive crypto derivatives regulations were crucial for Hong Kong's market. Recently, the legislative council has also passed a bill enabling the licensing of stablecoins within the region.
Hong Kong Set to Permit Crypto Derivatives Trading for Professional Investors
Hong Kong's regulator will allow professional investors to trade crypto derivatives, expanding the territory's virtual asset options significantly.
Jamie Bennett
Crypto Analyst
4 min read
14,852
Analysis
Market Sentiment
Bearish
Neutral
Bullish
News Impact
8/10
Credibility: 9/10
Trading Recommendation
BTC
BTC
BUY
Entry Price
$30000
Confidence
80%
Stop Loss
$29500
Take Profit
$31000 - $32000
The news about Hong Kong allowing crypto derivatives trading is bullish for the market, suggesting increased trading activity and interest in crypto.
