PANews reported on February 11 that, according to its official website, the Hong Kong Securities and Futures Commission (SFC) issued new guidelines today, allowing licensed brokers providing virtual asset trading services to expand their related services to margin financing. The guidelines also establish a high-level framework to provide guidance to virtual asset trading platforms, assisting them in developing recommendations for leveraged virtual asset-related products intended for sale to professional investors.

• The Securities and Futures Commission (SFC) is expanding its product and service diversification in accordance with its ASPIRe roadmap. As one of the latest measures, the SFC now allows virtual asset brokers to offer virtual asset financing services to their securities margin clients, provided they have sufficient collateral and robust investor protection. This move will encourage margin clients with sound credit standing and collateral to participate more actively in virtual asset trading, thereby improving liquidity in the Hong Kong market within a manageable risk framework.
• For licensed virtual asset trading platforms, the Securities and Futures Commission (SFC) has for the first time developed a high-level framework to guide them in developing perpetual contracts that are leveraged products intended for professional investors only. This initiative aims to assist investors in implementing risk management strategies and enhance the spot market liquidity of their underlying assets. To ensure investor protection, the framework outlines the high transparency required for these leveraged products, including clear disclosures and robust operational monitoring measures.
• To further promote virtual asset trading activities in Hong Kong, the Securities and Futures Commission (SFC) has permitted affiliates of licensed virtual asset trading platforms to act as market makers on their platforms, provided that strong safeguards are in place to minimize conflicts of interest. The participation of these affiliates should provide licensed virtual asset trading platforms with new liquidity channels.

Earlier today, it was reported that Leung Fung-yee announced three new measures for the regulation of virtual assets in Hong Kong, including margin financing and perpetual contracts .