The Hong Kong Securities and Futures Commission (SFC) plans to launch a regulatory framework for perpetual contracts, limited to institutional investors only.

At the Consensus Hong Kong conference on February 11, Hong Kong Securities and Futures Commission (SFC) Chief Executive Officer, Ms. Leung Fung-yee, stated that the regulator will release a "high-level framework" allowing licensed trading platforms to offer perpetual contract products. Ms. Leung pointed out that these products will initially be open only to institutional investors, not retail clients. The framework will focus on risk management, requiring platforms to have robust risk control capabilities and ensuring that trading mechanisms are fair to clients. Furthermore, the SFC will allow brokers to provide financing services to clients with good credit standing, with collateral including securities and virtual assets. Given the high volatility of virtual assets, initially only Bitcoin (BTC) and Ethereum (ETH) will be eligible as collateral. Regarding market-making services, platforms offering such services must establish an independent market-making department and implement a strict conflict-of-interest management mechanism. Ms. Leung stated that these measures continue the SFC's roadmap for promoting the development of the local crypto market by 2025, aiming to enable compliant institutions to offer more diversified products and services.