Hong Kong Advances Crypto Derivatives Market for Professional Traders

Hong Kong regulators are paving the way for professional traders to access the city's $21 trillion crypto derivatives market, a sector that now dwarfs spot trading in both size and velocity. According to TokenInsight, derivatives trading volume hit $21 trillion in Q1 2025, compared to just $4.6 trillion for spot trades. The new framework from the Securities and Futures Commission (SFC) focuses on futures and options, offering enhanced liquidity and hedging tools for sophisticated market participants.

Industry leaders like Deribit's Jean David Péquignot have long championed this move, calling it a cornerstone of Hong Kong's VIRTUAL asset ecosystem. The lack of clear derivatives regulations had previously deterred institutional involvement—a hurdle now being addressed as the city competes to become Asia's premier crypto hub. Tax incentives and legal reforms are accelerating this push.

In a parallel development, Hong Kong's Legislative Council passed stablecoin regulations in May, introducing licensing requirements for fiat-backed tokens. Financial Secretary Paul Chan's policies signal a deliberate alignment with global standards, aiming to bolster confidence in currency-pegged digital assets.