Hong Kong liberalizes crypto derivatives for qualified investors

• Hong Kong liberalizes cryptocurrency derivatives with regulatory focus
• Professional investors will have access to derivatives products
• Tax structure attracts cryptocurrency players to Hong Kong

The Hong Kong Securities and Futures Commission (SFC) announced which will allow professional investors to trade cryptocurrency derivatives. The measure is part of a broader plan to expand the offering of digital products and reinforce the city's role as an international reference in the sector.

Financial Services and Treasury Secretary Christopher Hui confirmed the information in an interview published on June 4. According to the report, the regulator's focus will be on maintaining a supervisory model with strong risk management, ensuring that operations are conducted in an orderly, transparent and safe manner.

The move comes as the global cryptocurrency market surpasses $3 trillion in value, with annual volumes exceeding $70 trillion, according to data released by the SFC. In line with this growth, the local government has been adopting a more favorable stance towards financial innovation since 2022.

In recent months, Hong Kong has approved a number of products related to the sector. Staking services, spot ETFs and futures have already been approved. In April this year, the HashKey platform was granted permission to offer cryptocurrency staking.

In addition, the government is adjusting the local tax structure to further attract companies in the sector. Hui said digital assets could qualify for tax exemptions under special rules designed for trusts, family offices and equity holdings.

New guidelines are expected to be released soon, with a second policy statement on virtual assets promised in 2025. The document is expected to strengthen the integration between Web3 technologies and the traditional financial system, expanding Hong Kong's relevance in the global cryptocurrency sector.