Hong Kong SFC to Let Crypto Exchanges Share Global Order Books

“This integration will enable local investors to tap global market liquidity efficiently with better price discovery and more competitive prices,” said SFC Chief Executive Officer Julia Leung in a Fintech Week speech synopsis published by the regulator.

Until now, Hong Kong platforms have operated under a ring-fenced model, requiring trades to be pre-funded and settled locally. The new policy represents a clear shift toward interoperability with global markets, aligning Hong Kong more closely with jurisdictions such as Singapore and Dubai that already support cross-border liquidity access.

Investor Takeaway

Token Rules Loosened for Professional Investors

In a separate circular, the SFC said it will exempt tokens and stablecoins licensed by the Hong Kong Monetary Authority from the 12-month trading history requirement for professional investors. The exemption will allow new assets that meet local licensing standards to be listed quicker, giving licensed venues more flexibility in product offerings.

The regulator said the changes reflect its ongoing review of the digital asset regime introduced last year. The framework was designed to attract global firms while maintaining standards on investor protection, custody, and disclosure.

Balancing Oversight and Competitiveness

Leung said Hong Kong must calibrate its regulatory approach to avoid losing market share to looser regimes while maintaining investor confidence. “Overly strict requirements risk driving liquidity and talent to lighter-touch jurisdictions, but too little oversight could undermine trust and stability,” she said.

The updates come as Hong Kong refines its digital asset policy amid intensifying global competition, particularly since U.S. President Donald Trump took office in January with a pro-crypto stance. Authorities are viewking to keep Hong Kong’s regulatory environment credible to institutions while remaining attractive to innovators.

Under the current system, 20 platforms have applied for SFC licensing, including HashKey and OSL, which are already operating under transitional arrangements. Analysts say the order book reform could assist these venues increase by linking to international liquidity pools while retaining compliance oversight.

Investor Takeaway

Next Steps for Hong Kong’s Crypto Market

The SFC’s circulars mark the most substantial update to policy since the licensing framework took effect last year. The regulator said it will continue consulting with the industry on custody rules, stablecoin oversight, and investor protection as trading volumes grow.

For local platforms, the challenge will be to meet approval standards while demonstrating adequate systems to manage cross-border risks. The new rules could attract institutional participants viewking deeper liquidity, though compliance costs are likely to rise as platforms adapt to the dual-approval structure.