Hong Kong plans to relax crypto trading rules to allow licensed platforms to connect to global liquidity pools and encourage more trading in the city.
The Securities and Futures Commission (SFC) said the changes will allow local exchanges to merge their local order books with global order books and expand the range of digital asset products they can offer, including tokenized securities and stablecoins approved by the Hong Kong Monetary Authority.
The moves are part of Hong Kong’s broader attempt to position itself as Asia’s leading crypto hub, while maintaining strict investor protections. The city has already introduced a licensing regime for exchanges and exchange-traded fund (ETF) products that track Bitcoin and Ethereum.
“Today we are taking an important step to connect to global liquidity,” said SFC CEO Julia Leung. “Making steady progress in market liquidity and business offerings is critical to maintaining the growth momentum of Hong Kong’s digital asset ecosystem.”
Hong Kong’s Liquidity Launch: From Protection to Global Relevance
November 2025 – In a groundbreaking move, Hong Kong’s Securities and Futures Commission (SFC) dismantled one of Asia’s most restrictive crypto barriers on November 3, granting licensed virtual asset trading platforms… pic.twitter.com/YLhqRADc2s
— Coby Vu | FVM Research (@Cobyv8820) November 3, 2025
Crypto platform operators can connect to global order books
Buy a combination of local and global order books, the SFC believes that “Hong Kong investors will benefit from greater market liquidity and more competitive pricing,” while still being protected by “robust safeguards to limit additional risks.”
Previously, orders had to be pre-financed and fulfilled within Hong Kong borders. Local crypto platforms wishing to link their order books will need to obtain written approval from the SFC.
Crypto companies can offer more trading services
The SFC also said crypto platform operators will be allowed to offer digital asset trading without a 12-month operating track record, a permission that only applies to professional investors and stablecoins currently licensed by the Hong Kong Monetary Authority (HKMA).
The SFC now also allows platform operators to distribute tokenized securities and other digital asset-related investment products.
Additionally, the SFC said companies affiliated with these trading platforms can provide customers with custody services for their digital assets or tokenized securities, even if the assets are not listed or traded on the platforms.
Hong Kong ranks among the highest in terms of adoption
According to the Chainalysis Global Crypto Adoption Index, Hong Kong currently ranks fifth in the world in crypto adoption.
Hong Kong ranks fifth in the overall index rankings (Source; Chain analysis)
Hong Kong has also been on a three-year journey to become a regional leader in digital assets, and has so far established a licensing regime for crypto platforms, listed exchange-traded products (ETPs) that track BTC and ETH, and currently also oversees crypto funds.
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