Hong Kong Eases Crypto Trading Rules for Global Liquidity Access

Hong Kong's Securities and Futures Commission (SFC) plans to ease restrictions on cryptocurrency trading, allowing locally licensed virtual-asset trading platforms (VATPs) to share global order books with overseas affiliates. Previously, Hong Kong trades were isolated from the global market.

This change will enhance liquidity by enabling access to international buyers and sellers, potentially improving pricing and increasing trading activity in Hong Kong.
The move is part of Hong Kong's strategy to compete with other crypto hubs like Singapore and the United States.
There remains uncertainty regarding the implementation timeline and whether retail investors can participate.
In August, SFC tightened crypto custody rules for VATPs, indicating ongoing regulatory oversight.
Over 40 companies have expressed interest in acquiring a stablecoin license in Hong Kong, despite stringent requirements.

While the policy shift may attract more firms to Hong Kong, boosting its crypto ecosystem, platforms must still comply with licensing, AML/KYC, and other regulatory frameworks.