HONG KONG – In a series of landmark circulars issued in February 2026, the Securities and Futures Commission (SFC) officially transitioned its virtual asset (VA) regime from “restrictive” to “institutional-competitive.” Under the second phase of the ASPIRe Roadmap, the regulator has unlocked leveraged products, permitted affiliated market makers, and integrated local platforms into global liquidity pools.

1. The Leverage Breakthrough: Margin Financing & Perps

For the first time, the SFC has bridged the gap between traditional brokerage services and digital assets by allowing “Financial Accommodation” (margin) and Perpetual Contracts.

VA Margin Financing

Licensed brokers can now extend credit to clients for purchasing virtual assets. However, the SFC has imposed high-barrier safety rails to prevent the “contagion” seen in unregulated markets:

• Eligible Collateral: Limited strictly to Bitcoin (BTC) and Ethereum (ETH).
• Mandatory Haircuts: Brokers must apply a minimum 60% haircut to VA collateral. This means $100 of BTC only provides $40 of buying power—a stark contrast to the 10–20% haircuts common on offshore exchanges.
• Target Audience: Limited to existing securities margin clients who have already passed rigorous credit assessments.

Virtual Asset Perpetual Contracts (Perps)

The SFC has introduced a principles-based framework for “Perps,” which are derivatives with no expiry date.

• Professional Investors Only: Unlike spot trading, Perps are currently prohibited for retail users.
• Transparent Pricing: Platforms must derive “Funding Rates” and “Mark Prices” from multiple independent, high-volume sources to prevent price manipulation during liquidations.
  
  

2. Unlocking Liquidity: Shared Order Books & AFMMs
   
   

Liquidity was the primary hurdle for Hong Kong’s 2024 crypto launch. The 2026 updates address this through two structural shifts:

Shared Order Books (Global Pooling)

Hong Kong-licensed platforms are now permitted to “pool” their orders with overseas affiliates.

• The Impact: This creates deeper order books and tighter bid-ask spreads, making HK competitive with global giants.
• Retail “Opt-In”: Retail investors can access these global pools only if they expressly elect to do so after receiving a clear disclosure about the cross-border settlement risks.
  
  

Affiliated Market Makers (AFMM)

In a major policy reversal, the SFC now allows affiliates of a trading platform to act as market makers on that same platform.

• Independence Rules: The AFMM must be “functionally independent,” with separate management and a “Chinese Wall” to prevent front-running client orders.
• Priority Execution: A platform must ensure that client orders always take priority over the AFMM’s proprietary trades at the same price.
  
  

3. The ASPIRe Framework: 5 Pillars of Growth

The February updates are the direct result of the SFC’s ASPIRe strategic blueprint:

4. Operational Guardrails: The New “Standard”
   
   

The SFC’s new guidance places heavy personal accountability on Responsible Officers (ROs) and Managers-in-Charge (MICs). Firms must now implement:

1. Withdrawal Monitoring: Automated systems to detect and block massive, abnormal outflows that could signal a protocol hack.
2. Credit Analysis: Firms must assess a client’s “VA Volatility Risk” specifically, rather than just general financial health.
3. Conflict Reporting: Any platform using an AFMM must submit an Independent Professional Firm’s Report to the SFC before starting operations.
   
   

The Bottom Line

The 2026 ASPIRe updates signal that Hong Kong is no longer playing “catch-up.” By allowing regulated leverage and global liquidity sharing, the SFC has created a framework that mirrors the sophistication of traditional Tier-1 financial markets while maintaining the strictest safety standards in the digital asset world.