Hong Kong’s financial regulator, the Securities and Futures Commission (SFC), has taken a significant step toward reinforcing the city’s position as a leading global crypto hub. The new regulatory move allows licensed local crypto exchanges to connect with international trading platforms through shared order books, giving investors access to global liquidity and more competitive pricing.
According to the SFC, local exchanges must obtain written approval from the regulator before integrating with overseas platforms. This ensures transparency and maintains compliance while promoting a more open trading environment.
New Rules Offer Flexibility and Access to Global Liquidity
The SFC’s latest framework marks a major shift in Hong Kong’s approach to digital assets. By allowing shared order books, local traders will be able to tap into worldwide liquidity pools, improving market efficiency and pricing options.
In addition, the regulator introduced a new exemption for certain tokens and stablecoins that are licensed by the Hong Kong Monetary Authority (HKMA). These assets are now excluded from the previous 12-month trading history requirement, which was originally in place for professional investors. This update could help streamline the approval process for newer digital assets and make Hong Kong’s crypto market more attractive to both issuers and investors.
Balancing Innovation and Investor Protection
SFC CEO Julia Leung highlighted the importance of maintaining a balance between innovation and regulation, noting that excessively strict rules could drive liquidity and talent to other markets. The regulator’s new measures reflect Hong Kong’s continued commitment to building a robust, competitive, and globally integrated crypto ecosystem.
With the latest updates, Hong Kong is positioning itself at the forefront of global digital asset regulation, signaling to crypto businesses worldwide that the city is open for innovation while maintaining strong investor protections.
Keywords: Hong Kong crypto regulation, SFC crypto rules, global liquidity, shared order book, stablecoin exemption, Julia Leung, Hong Kong crypto hub, digital assets Hong Kong
