"Hong Kong expected to allow virtual asset derivatives trading... Full-scale market expansion ahead"

The Hong Kong Securities and Futures Commission has announced plans to allow professional investors to trade virtual asset (cryptocurrency) derivatives.

According to CoinDesk, a crypto-specialized media outlet, on the 5th (local time), the Hong Kong Securities and Futures Commission (SFC) will permit professional investors to trade virtual asset derivatives. This move is seen as a measure to significantly expand the virtual asset market within Hong Kong.

Typically, the cryptocurrency derivatives market is known to be much larger in scale than the spot market. According to TokenInsight, in the first quarter of this year, global cryptocurrency derivatives trading volume reached $21 trillion (approximately ₩28,518 trillion), about 4.5 times the spot trading volume of $4.6 trillion (approximately ₩6,248.8 trillion).

Industry participants have long called for regulatory frameworks for Hong Kong’s derivatives market. Jean-David Péquignot, Chief Business Officer at Deribit, pointed out in an interview with the South China Morning Post earlier this year that "Hong Kong still lacks regulations on derivatives."

Earlier, Hong Kong’s Legislative Council passed a bill introducing a licensing system for stablecoin issuance.