Hong Kong Set to Unleash Crypto Derivatives Trading—Brace for Volatility

Hong Kong's financial regulators are doubling down on crypto—derivatives trading is next in line. Expect leveraged bets, institutional players, and the usual circus of speculative frenzy.

Wall Street’s playbook meets Web3 chaos. Will this be the gateway for mainstream adoption or just another casino for whales? Place your bets—responsibly, or not.

Bonus jab: Because what’s finance without a little reckless innovation wrapped in regulatory lipstick?

— Marzell (@MarzellCrypto) June 5, 2025

According to the SFC, the proposed product will facilitate efficient risk transfers, boost liquidity in the underlying spot markets — where cryptocurrencies are traded for immediate payment and delivery — and support experienced investors in engaging in hedging and leveraging strategies.

Furthermore, Hui said that the Financial Services and the Treasury Bureau is preparing to issue the second policy statement on virtual assets, laying out future policy directions.

Active Virtual Asset Development Since October 2022

This follows the release of Hong Kong Special Administrative Region government’s first policy statement on virtual asset development in October 2022, which set out its stance and strategy to build a vibrant crypto ecosystem in the city.

Earlier this year, the SFC outlined plans to broaden the range of virtual asset products and services available to different types of investors.

As part of its efforts, the SFC permitted staking services for virtual assets, enabling investors to earn additional returns.

In April, the SFC approved two licensed virtual asset trading platforms to offer staking services under specific conditions. This was followed by two SFC-authorized virtual asset spot (ETFs) revising their documentation to engage in staking activities.

Hong Kong SFC Greenlights Staking Services For Licensed Crypto Platforms

In April 2025, Hong Kong’s SFC officially authorized licensed virtual asset trading platforms to offer staking services. This move was aimed to reinforce the city’s status as a leading hub for digital assets in the Asia-Pacific region.

The announcement was made in tandem with a keynote speech by SFC Executive Director Christina Choi at the 2025 Hong Kong Web3 Festival. Choi talked about how blockchain has the potential to reshape finance.  

Furthermore, Hong Kong-based cryptocurrency exchange HashKey received regulatory approval to offer staking services. This move was meant to expand the appeal of proof-of-stake (PoS) investments like spot Ether ETFs among institutional investors.

Key Takeaways

• Hong Kong’s Securities and Futures Commission (SFC) plans to introduce virtual asset derivatives trading for professional investors.

• Hong Kong has been ramping up efforts to strengthen its position as a digital asset hub.