Hong Kong SFC to Link Licensed Virtual Asset Platforms with Overseas Liquidity
On November 3, Leung Fung-yee, CEO of the Hong Kong Securities and Futures Commission (SFC), announced during Hong Kong Tech Week 2025 a new policy allowing licensed virtual asset trading platforms to connect with overseas liquidity via affiliated foreign platforms.
Safeguards to Minimize Risks
- Overseas platforms must implement delivery-versus-payment and prepayment mechanisms.
- A reserve fund will be established in Hong Kong to compensate users if needed.
- A joint supervision program between Hong Kong and overseas regulators will be launched.
The initiative aims to balance greater convenience for users with robust protections against settlement and integrity risks.
She stated, "Hong Kong's regulatory regime is renowned for its visibility and transparency, providing clarity, certainty, and consistency for the market, thereby enhancing the confidence of market participants and supporting sustainable market development."
This approach reinforces Hong Kong’s commitment to maintaining a secure and reliable environment for virtual asset trading, boosting market confidence.