Hong Kong regulators are considering expanding crypto offerings, including derivatives and margin trading, to boost global liquidity.

Securities and Futures Commission (SFC) executive director Eric Yip highlighted the need for these measures, following stricter global regulations after FTX’s collapse.

Despite China’s crypto ban, Hong Kong remains a key financial hub.

The city is exploring new regulations for custody, staking, and over-the-counter (OTC) trading.

Crypto exchanges in Hong Kong saw US$26.6 billion in transactions in early 2024, surpassing Singapore but facing regulatory hurdles.