Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Hong Kong is set to ease its cryptocurrency trading regulations to enable local platforms to access global liquidity, as announced by the city’s leading financial regulator on Monday during Hong Kong Fintech Week.
Key Takeaways:
- Hong Kong will permit licensed cryptocurrency exchanges to link with global order books, moving away from its current isolated trading framework.
- This initiative is part of a larger strategy to attract cryptocurrency companies and synchronize digital asset regulations with those of traditional financial markets.
- Regulators are also working on new licenses for dealers, custodians, and stablecoin issuers to enhance the city’s digital finance landscape.
Julia Leung, Chief Executive Officer of the Securities and Futures Commission (SFC), stated that licensed cryptocurrency exchanges will soon be permitted to connect their Hong Kong operations with global order books, thereby ending the existing system that restricts trades to the city.
The forthcoming change, outlined in a regulatory circular anticipated later today, aims to align the regulations for digital assets with those applicable to traditional financial products, according to a report by Bloomberg on Monday.
Hong Kong Intensifies Crypto Efforts but Lags Behind US in Trading Volume
This initiative represents a notable advancement in Hong Kong’s ongoing efforts to establish itself as a regional hub for digital assets.
Since 2022, the city has implemented a comprehensive licensing framework for exchanges, introduced Bitcoin and Ether-linked exchange-traded products, and approved digital asset funds.
However, trading volumes have not kept pace with global frontrunners such as the United States, where the administration under President Donald Trump has adopted a more favorable approach toward the cryptocurrency sector.
“You could say we are on the stricter side,” Leung remarked. “Once we are confident in our ability to safeguard investors, we do ease restrictions — as we have done with global liquidity.”
The SFC is also in the process of finalizing new licensing frameworks for cryptocurrency dealers and custodians, while the Hong Kong Monetary Authority is set to issue the first stablecoin licenses next year.
Related Posts
Excited to be speaking at Hong Kong FinTech Week this Tuesday (Nov 4)!
I’ll be sharing my thoughts on the next chapter of digital assets. pic.twitter.com/YOTlVItfFl— Richard Teng (@_RichardTeng) November 3, 2025
In subsequent phases, regulators may allow locally licensed cryptocurrency brokers, in addition to exchanges, to access international liquidity pools.
If approved, this regulation could facilitate the entry of firms like Binance and Coinbase into Hong Kong more seamlessly through brokerage licenses rather than full exchange applications, which can take years to complete.
At present, 11 cryptocurrency exchanges possess full SFC licenses, while 49 brokers operate under omnibus account arrangements.
The SFC also revealed plans to relax listing requirements for new tokens and HKMA-approved stablecoins, eliminating the 12-month track record stipulation for professional investors.
Hong Kong Unveils New Digital Asset Strategy
Hong Kong has released its second significant policy statement regarding digital assets, emphasizing stablecoin regulation and the tokenization of real-world assets (RWA) as central to its ambition of becoming a global fintech center.
The new “LEAP” framework prioritizes legal clarity, ecosystem expansion, real-world adoption, and talent cultivation, with a stablecoin licensing system set to commence on August 1.
The government also intends to regulate tokenized government bonds and ETFs, facilitating secondary market trading of these products on licensed digital asset platforms.
It aims to broaden tokenization initiatives into areas such as metals and renewable energy, showcasing applications like gold and solar panels.
As reported, professionals in the cryptocurrency and hedge fund sectors are significantly contributing to Hong Kong’s residential rental market, which continues to face challenges due to weak demand from traditional sources.
The post Hong Kong to Let Licensed Crypto Exchanges Connect With Global Markets appeared first on Cryptonews.
