New Regulations to Enhance Trading Efficiency and Global Connectivity
Hong Kong’s financial regulator has introduced new rules allowing licensed crypto exchanges to connect with international markets. The Securities and Futures Commission (SFC) announced that these exchanges can now share order books with overseas trading platforms, provided they first obtain written approval.
According to the SFC, this change is designed to give local investors access to global liquidity, resulting in better price discovery and more competitive trading conditions. The move represents a shift from Hong Kong’s current model, where orders are pre-funded and settled only within its borders.
SFC Chief Executive Officer Julia Leung said the initiative will help strengthen Hong Kong’s financial ecosystem and attract broader participation in its digital asset market. She noted that access to global order books would enhance efficiency and improve market depth for professional investors.
SFC Relaxes Rules to Encourage Market Growth
In a separate circular, the SFC announced that tokens and stablecoins licensed by the Hong Kong Monetary Authority would be exempt from the 12-month trading history previously required before being offered to professional investors. This adjustment aims to speed up token listings and create more diverse investment opportunities in the market.
The regulator explained that these measures reflect Hong Kong’s ongoing review of its digital asset regulations. The city is seeking to remain competitive internationally while maintaining strong investor protection and operational transparency.
Leung stated that Hong Kong must strike a careful balance between oversight and innovation. Overly strict rules, she cautioned, could drive liquidity and skilled professionals to other jurisdictions, while weak regulation might undermine market trust.
The latest updates underline Hong Kong’s commitment to supporting a trusted and sustainable crypto trading environment. By opening access to global liquidity and refining token rules, the SFC aims to position the city as a leading center for digital assets in Asia.