Key Takeaways
- The SFC will allow licensed Hong Kong exchanges to link their trading systems with global order books.
- Industry leaders have called the move a vital step toward integrating Asia’s fragmented crypto markets.
- The move marks one of the biggest regulatory shifts since the city’s crypto push began.
Hong Kong’s financial watchdog will allow licensed crypto platforms to connect their local trading systems with global order books, the Securities and Futures Commission (SFC) said on Monday.
The policy shift, announced by SFC Chief Executive Julia Leung at the Hong Kong FinTech Week conference, marks the most significant relaxation of crypto trading rules since the city began its three-year crypto push.
From Isolation to Integration
Until now, Hong Kong’s licensed exchanges have operated under a closed settlement system that restricted all trading to domestic users.
The new framework will enable what the SFC describes as a “shared order book,” allowing cross-border matching and potentially tighter price discovery for local investors.
The regulator is also finalizing licensing regimes for crypto brokers, custodians, and stablecoin issuers, Leung said.
The Hong Kong Monetary Authority (HKMA) is also expected to issue the first stablecoin licenses next year.
Leung said the measure would let qualified crypto platforms match local clients with orders from overseas affiliates.
“You can say we are on the tougher side,” said Leung. “Once we are sure that we are able to protect the investors, we do relax, as we did with the global liquidity.”
Balancing Access
According to Bloomberg, the SFC may eventually permit locally licensed crypto brokers, a category distinct from exchanges, to also tap international liquidity pools.
That change could create a faster route for large global players such as Binance or Coinbase to operate in the city through a broker license rather than the more stringent exchange approval process.
At present, Hong Kong lists 11 fully licensed exchanges and 49 brokers authorized to offer virtual-asset dealing services.
The SFC also said on Monday that licensed exchanges will be able to list new tokens and HKMA-approved stablecoins for professional investors without the previous one-year track record requirement.
Slow Market, Big Ambitions
Hong Kong has sought to regain its reputation as Asia’s crypto gateway after years of cautious regulation and mainland Chinese restrictions.
However, trading volumes and investor participation remain considerably lower compared to leading markets, such as the U.S.
Crypto trading activity in Hong Kong has yet to reach the levels seen in other major Asian markets.
According to data from blockchain analytics firm Chainalysis, Hong Kong ranked fifth globally in population-adjusted crypto adoption in 2025, reflecting strong digital participation on a per-capita basis.
But in absolute terms, the city did not make the top 20 in the firm’s global adoption index, lagging behind regional leaders such as India, Vietnam, and Pakistan.
Will Investors Bite After Crypto Upgrade?
Financial experts remain cautiously optimistic about whether Hong Kong’s relaxed crypto trading framework will spark meaningful participation.
David Kemmerer, Co-Founder and CEO of crypto tax software CoinLedger, told CCN the move represents a significant turning point for Hong Kong.
According to Kemmerer, the issue was never a lack of interest in digital assets across Asia, but rather fragmentation and isolation in the trading landscape.
“It is not that Asia didn’t have an interest in crypto trading. They did but they did not have the right integration,” he said.
“The markets were fragmented and the exchanges were done in semi-isolation — compliant and well-run, though cut off from the deep liquidity that drives global price recovery.”
Kevin Marshal, a tax expert and author, told CCN that greater global connectivity could drive stronger engagement, but that the system needs to be both safe and trustworthy.
“The main issue remains whether investors will trust this framework to join the program,” he cautioned.
However, Marshal noted that cross-border trading introduces operational and legal challenges.
“The process of obtaining services between different countries creates new operational difficulties,” he said, highlighting how asset transfers across jurisdictions can “create opportunities for regulatory arbitrage and settlement risk and market manipulation risks.”
“The outcome will depend on how well exchanges follow their rules and how well regulators enforce them and how well organizations disclose their risk management practices,” Marshal added.
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Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
