Hong Kong's Crypto Leap: Bridging China and Global Digital Finance

Hong Kong's Securities and Futures Commission (SFC) has unveiled a landmark policy allowing licensed cryptocurrency exchanges to tap into global liquidity pools by sharing order books with overseas platforms, signaling a major step in the city's push to become a leading digital-asset hub. The move, announced at Hong Kong Fintech Week 2025, aims to enhance trading efficiency, pricing transparency, and competitiveness in the region's virtual asset market, according to a CryptoTimes report.

Under the new framework, exchanges must secure written approval from the SFC to integrate with international trading systems, enabling local investors to access deeper global liquidity, the report said. This shift breaks from Hong Kong's previous "closed-loop" model, where trades were confined to local systems. "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. The regulator also relaxed rules for stablecoins, exempting Hong Kong Monetary Authority (HKMA)-licensed tokens from a 12-month trading history requirement for professional investor offerings, the report added.

The policy aligns with Hong Kong's broader strategy to attract institutional and retail investors by harmonizing digital-asset regulations with traditional financial markets. Since 2022, the SFC has granted full licenses to three major exchanges-HashKey, OSL, and HKVAX-while preparing to issue licenses for dealers, custodians, and stablecoin issuers, according to a Yahoo Finance report. The city has also approved Bitcoin and Ether exchange-traded funds (ETFs) and is testing tokenized real-world assets like government bonds, the CryptoTimes piece noted.

Industry experts praised the move as a "game-changer." Dave Chapman, CEO of Bullish, a digital-asset platform, noted that global liquidity access would attract more trading volume and innovation to Hong Kong, the report said. Standard Chartered CEO Bill Winters added that blockchain technology is poised to "rewire" financial systems, a vision he said Hong Kong is actively embracing.

The SFC's reforms come as Hong Kong seeks to outpace rivals like Singapore in the race for crypto dominance. A blockchain security adviser to Singapore's central bank, Gu Ronghui, recently told Yahoo Finance that many Web3 firms have shifted headquarters to Hong Kong due to its proactive regulatory approach. The city's advantage includes a skilled tech workforce, deep capital markets, and a "same business, same risks, same rules" philosophy that appeals to global firms, the CryptoTimes report observed.

However, challenges remain. While the SFC emphasized investor protection through anti-money laundering checks and transaction monitoring, cross-border regulatory harmonization and cybersecurity risks will require careful management, the report warned. The regulator also hinted at future phases, including allowing licensed brokers-not just exchanges-to access global liquidity pools, the Yahoo Finance piece added.

Hong Kong's latest policy underscores its ambition to position itself as a bridge between China's vast market and global digital finance. With plans to launch stablecoin licensing in 2026 and expand tokenization into sectors like renewable energy, the CryptoTimes report concluded, the city is signaling its intent to lead the next phase of financial innovation.