Hong Kong Working to Allow Perpetual Contracts, Chief Regulator Says

Why It Matters

By legitimizing perpetual futures for institutions, Hong Kong positions itself as a regulated hub for crypto derivatives, attracting global capital. The move also sets standards for risk controls, enhancing market confidence.

Key Takeaways

• SFC to publish high-level perpetual contracts framework
• Perpetual futures limited to institutional investors initially
• BTC and ETH accepted as collateral for financing
• Market‑making units must have independent conflict‑of‑interest rules
• Broker financing requires strong credit profiles

Pulse Analysis

Hong Kong has been steadily building a reputation as a gateway for digital‑asset finance, leveraging its robust legal system and proximity to mainland China. The Securities and Futures Commission’s 2025 roadmap earmarked crypto‑related services as a priority, following earlier consultations on custody and anti‑money‑laundering standards. By moving from advisory papers to a concrete framework, the regulator signals confidence in the sector’s maturity and its willingness to compete with established hubs such as Singapore and London. This regulatory clarity is expected to draw both local and foreign firms seeking a stable environment for innovation.

The forthcoming high‑level framework will allow licensed platforms to list perpetual futures, a product that mirrors traditional derivatives but settles continuously without an expiry date. Access will be restricted to institutional investors, ensuring participants possess the capital and risk‑management capabilities required for leveraged exposure to volatile assets like Bitcoin and Ether. The SFC also mandates independent market‑making units and strict conflict‑of‑interest policies, addressing concerns that have plagued unregulated exchanges. Additionally, brokers may extend financing secured by BTC or ETH, provided borrowers meet stringent credit criteria, further integrating crypto into mainstream collateral practices.

These measures could reshape Hong Kong’s financial landscape by creating a regulated pipeline for crypto‑derivative trading and financing. Institutional players gain a compliant avenue to hedge or gain exposure, while the city benefits from increased fee revenue and talent inflow. Moreover, the clear rules may encourage other jurisdictions to adopt similar standards, fostering global interoperability of digital‑asset markets. As the framework rolls out, market participants will watch for detailed risk‑control requirements, which will determine how quickly liquidity builds and whether Hong Kong can capture a meaningful share of the burgeoning perpetual futures market.

Hong Kong working to allow perpetual contracts, chief regulator says

Hong Kong's Securities and Futures Commission will publish a “high‑level framework” allowing perpetual contracts, SFC CEO Julia Leung said. · By Nikhilesh De

Feb 11 2026, 5:13 a.m.

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Julia Leung, CEO of Hong Kong’s Securities and Futures Commission.

HONG KONG — Financial regulators in Hong Kong are going to unveil a framework for trading platforms to offer perpetual contracts, the head of the region’s Securities and Futures Commission said Wednesday.

Brokers in Hong Kong will soon be able to provide financing to clients backed by bitcoin (BTC $67,698.17) and ether (ETH $1,977.71), and platforms will be able to offer market‑making through independent units, said Julia Leung, the CEO of Hong Kong’s SFC, at CoinDesk’s Consensus Hong Kong conference.

While the SFC plans to share more details later, the moves are part of the regulator’s broader push to let regulated firms offer more products and services, Leung said, following its 2025 roadmap which included an effort to develop the local crypto market.

The SFC has already published the conclusions from its consultation on custody and related issues, but these new initiatives are focused on continuing to develop these markets in Hong Kong, including with novel products like perpetual futures contracts.

“We will be publicizing a high‑level framework for platforms to be offering perpetual contracts,” she said.

These products will only be available for institutional investors, not retail clients, at this time, she added, and the framework will focus on risks. Platforms seeking to offer these products will need to be able to manage those risks, “and it also has to be very fair to the customers.”

On the other initiatives, Leung said that the SFC will start sharing further details soon.

“We will allow brokers to provide financing to clients with strong … credit profiles, and the collateral will be backed by both securities as well as virtual assets,” she said. “Because virtual assets … many of them are very volatile, so we’ll start with two that will be eligible as collateral, bitcoin and ether.”

Platforms looking to engage in market‑making will need to make sure they have strong conflict‑of‑interest rules and independent market‑making units, she said.