Hong Kong is allowing cryptocurrency margin trading and perpetual futures as it strengthens its digital asset regime, Cointelegraph reported on Feb. 11 (local time).
Hong Kong's Securities and Futures Commission (SFC) announced new guidelines allowing licensed brokers to provide digital asset margin trading.
Under the measure, brokers can lend against digital assets to clients who have securities margin accounts, and only bitcoin (BTC) and ethereum (ETH) are recognised as collateral. It also set out a framework for digital asset trading platforms to offer perpetual contracts to professional investors. Retail investors are excluded from the regulation.
The SFC will allow affiliates of licensed platforms to act as market makers, while strengthening conflict-of-interest safeguards and security controls to ensure fairness.
Eric Yip (에릭 입), the SFC's executive director of intermediaries, said, “The policy focuses on strengthening liquidity and increasing market depth,” and added, “The goal is to maintain financial stability through responsible leverage.”
Chi-gyu Hwang
delight@d-today.co.kr