Hong Kong Opens Door to Crypto Derivatives in Bid to Rival Global Hubs

Hong Kong could soon offer virtual assets -derivatives trade for professional investors.

This news reported by China dailycomes when the Hong Kong Securities Regulator announces plans to introduce the option as part of its plan to expand the product range, while the risk is kept under control.

Security is an important part of this focus, since the Securities and Futures Commission of SFC indicates that it will ensure that transactions are carried out “in an orderly, transparent and safe way”.

According to Hong Kong Treasury Chief, Christopher Hui Ching-YU, this plan is intended to strengthen the competitiveness on the global market for digital assets.

This follows plans that were shared earlier in the year in which the regulator outlined to broaden the reach of virtual asset products and services for different investors.

The SFC has allowed to allow virtual assets services to seduce investors with the potential to achieve extra returns.

Hui also pointed out that virtual assets are recognized as qualifying transactions for tax concessions, as part of an attempt to attract more large-scale international fintech companies to set up in Hong Kong.

The newly proposed options will enable efficient risk transfers and stimulate liquidity on the underlying spot markets, while professional investors are supported with hedge and lever strategies.

Hui said that the Treasury is planning to set up the new policy directions in a statement that is investigating ways to use both the benefits of traditional financial services and innovative technologies that can help the virtual asset market and at the same time improve the safety and flexibility of real economy activities. This is intended to encourage both local and international matters.

In April, the SFC approved two licensed virtual asset opportunities platforms to offer expansion services. This was followed by two Virtual Asset Spot Exchange -treated funds, or ETFs, with revisions of documentation to participate in expansion activities.

“These products have widened the product diversity of the Hong Kong market, which further improves the position of Hong Kong as a leading ETF market in Asia,” Hui said.

The SFC estimates that the global market for virtual assets has shown trading volumes of more than $ 70 trillion annually.

Published by Stacy Elliott.