SFC Eases Hong Kong Crypto Rules to Boost Market Liquidity
On November 3, Hong Kong’s Securities and Futures Commission (SFC) eased Hong Kong crypto rules to boost market liquidity and attract global players. Licensed exchanges can now access overseas affiliates’ liquidity pools. This change aims to narrow spreads on major assets like BTC and ETH by up to 20%.
The SFC also waived the 12-month track record requirement for new platforms serving professional investors. Revised custody licences for digital asset custodians will open next year. Full licences for stablecoin issuers and crypto dealers are expected by 2026. CEO Julia Leung says these pragmatic Hong Kong crypto rules will strengthen the city’s position against Singapore and support growth in its digital asset ecosystem.
Bullish
The SFC’s decision to ease Hong Kong crypto rules is bullish for the market. In the short term, greater liquidity and reduced spreads will likely increase trading volumes and improve price stability for major assets like BTC and ETH. Over the long term, waived track record requirements and new licensing for custodians, stablecoin issuers, and crypto dealers should attract institutional players such as Binance and Coinbase. This influx could further deepen market pools and strengthen Hong Kong’s position as a regional crypto hub, supporting sustained growth and investor confidence.