Hong Kong is taking another major step toward deepening its digital asset market. The city’s top market watchdog, the Securities and Futures Commission (SFC), announced plans to let licensed crypto exchanges connect with global order books a move designed to spark trading activity that has remained quieter than expected in recent years.
Connecting Hong Kong to the Global Crypto Market
Under the new circular unveiled during Hong Kong FinTech Week 2025, the SFC will allow locally licensed platforms to participate in a “Shared Order Book” system. This means Hong Kong exchanges can match orders from their clients with those from overseas affiliates provided the foreign partners are licensed in their respective jurisdictions and meet strict international compliance standards.
Julia Leung, Chief Executive of the SFC, said the move will allow investors to access global market liquidity more efficiently, bringing better price discovery and more competitive pricing to the local crypto scene.
“This integration will enable local investors to tap global market liquidity efficiently with better price discovery and more competitive prices,” Leung said.
Safeguards and Risk Controls
To keep cross-border risks in check, the SFC has introduced a series of safeguards. Platforms must have automated pre-trade verification systems to confirm sufficient settlement assets before any transaction occurs. All trades must be settled under a delivery-versus-payment (DvP) mechanism to avoid mismatches between assets and payments.
Additionally, licensed platforms are required to:
- Settle trades with their overseas affiliates at least once per day,
- Maintain a reserve fund in Hong Kong to compensate clients in case of settlement failures, and
- Conduct unified market surveillance jointly with their overseas partners to monitor misconduct or manipulation.
Retail investors will be allowed to participate in these shared order books only after receiving clear disclosures about the cross-jurisdictional risks and giving their explicit consent.
A Balancing Act Between Innovation and Oversight
Leung acknowledged the delicate balance regulators face.
“Overly strict requirements risk driving liquidity and talents to lighter-touch jurisdictions, but too little oversight could undermine trust and stability,” she said.
Looking ahead, the SFC is also considering allowing licensed crypto brokers to access global liquidity pools. This could pave the way for major players such as Binance to enter Hong Kong’s market through a broker license, avoiding the longer process of acquiring a full exchange license.
Hong Kong’s Quest to Become a Digital Asset Hub
Despite ambitious policies, Hong Kong’s crypto market activity remains relatively subdued compared to more vibrant hubs like the United States or Singapore.
Recent Chainalysis data indicates the city still trails regional peers such as India, Japan, and Vietnam in crypto adoption and trading volume.
Part of the challenge lies in Beijing’s cautious stance toward privately issued digital currencies and cross-border stablecoin flows. Yet Hong Kong regulators remain determined to build a trusted, globally competitive digital asset ecosystem.
In a related move, the SFC also removed the requirement for new tokens and HKMA-approved stablecoins to maintain a 12-month trading history before being made available to professional investors signaling a more flexible and growth-oriented approach.
The Bigger Picture
By integrating with global liquidity pools and softening entry barriers, Hong Kong aims to reinvigorate its role as a leading Asian crypto hub. The city’s message is clear: it wants to remain open to innovation, but on a foundation of trust, transparency, and investor protection.
