Hong Kong is ramping up its push to become a global hub for digital assets. The Securities and Futures Commission (SFC) is set to introduce a comprehensive cryptocurrency roadmap this week, paving the way for derivatives and margin lending in virtual assets.
The initiative signals Hong Kong’s intent to attract capital and strengthen its position as a leading financial center for crypto. The announcement comes as the city seeks to regain its competitive edge following China’s sweeping ban on cryptocurrency transactions in 2021.
Regulatory Developments and Market Expansion
Last year, Hong Kong approved Bitcoin and Ethereum exchange-traded funds (ETFs), marking a major step in integrating digital assets into mainstream finance. However, these ETFs have underperformed so far. Now, authorities are considering expanding investment options.
SFC CEO Julia Leung confirmed at CoinDesk’s Consensus Hong Kong 2025 conference that the commission is weighing the introduction of crypto derivatives for professional investors and margin lending for select customers.
Financial Secretary Paul Chan revealed that Hong Kong has so far granted nine virtual asset trading platform (VATP) licenses. Bullish Group, the owner of CoinDesk, received one of these licenses on Tuesday. The government is also reviewing eight additional applications while working to advance stablecoin regulation.
Global Competition and Institutional Interest
Hong Kong faces competition from financial hubs like Singapore and Dubai, both of which are aggressively positioning themselves as leaders in the virtual asset space.
The first major crypto industry event since U.S. President Donald Trump took office in January has fueled optimism among industry leaders. Richard Teng, CEO of Binance Holdings, noted a shift in sentiment in the U.S., with sovereign wealth funds and institutional investors now debating not whether to invest in crypto, but how much.
Tron founder Justin Sun also made headlines at the event, revealing his investment in World Liberty Financial, a newly launched crypto company with ties to Trump. Sun emphasized the company’s focus on bridging traditional finance with the crypto world.
Bitcoin’s price has reflected this renewed institutional interest, more than doubling in value last year. It reached an all-time high of $109,071 on January 20—Trump’s inauguration day—before pulling back to around $96,000.
Hong Kong’s upcoming cryptocurrency roadmap will provide more clarity on the city’s regulatory stance and growth plans, setting the stage for its next phase in digital asset integration.
