Regulatory Update Allows Virtual Asset Issuance for Professional Investors and Local Stablecoins
The Hong Kong Securities and Futures Commission (SFC) has updated its policies, now permitting platform operators to issue virtual assets without a 12-month track record. This move, aimed at professional investors and Hong Kong-licensed stablecoins, signifies a shift in regulatory strategy within the region's financial infrastructure. This regulatory update could enhance financial access and liquidity for emerging crypto projects in Hong Kong, influencing investment strategies and market dynamics.
The SFC's decision, effective November 3, allows platform operators to issue virtual assets without a 12-month track record to professional investors and local stablecoins. This change is expected to bring more investment opportunities and liquidity into the market. By eliminating the 12-month track record requirement, new projects can rapidly access professional Hong Kong capital and support, possibly speeding up innovation and competitive dynamics.
Expert Insights and Market Dynamics
Julia Leung, CEO, SFC, said, "This update reflects revised regulatory expectations in key areas, including staking and the execution of trades conducted through SFC-licensed virtual asset trading platforms."
Hong Kong has experimented with regulatory sandboxes in fintech, mirroring global practices, prior to this update allowing virtual assets without a track record.
As of November 3, 2025, Ethereum (ETH), priced at $3,747.03 and with a market cap of $452.26 billion, saw a 4.06% decrease over the past 24 hours. Its trading volume has surged by 96.12%, indicating volatile market activity.
The SFC's regulatory shift could attract more global investments into Hong Kong, leveraging its position as a financial hub. This policy evolution might further enhance Hong Kong’s competitive edge in technology and finance.