Hong Kong Explores Virtual Asset Derivative Trading for Professionals

The Hong Kong Securities and Futures Commission is actively exploring the introduction of virtual asset derivative trading for professional investors. This initiative is part of a broader strategy to bolster the region's financial infrastructure and attract more experienced investors to the virtual asset market. The commission is also placing a strong emphasis on implementing robust risk management measures to ensure the stability and security of these new financial products.

Christopher Hui, Secretary for Financial Services and the Treasury, confirmed during a Legislative Council session that the Securities and Futures Commission is actively evaluating the introduction of virtual asset derivative products for professional investors. This move is designed to offer a more diversified range of investment options for experienced investors while maintaining stringent risk management protocols.

The Financial Services and the Treasury Bureau is set to release a second virtual asset policy statement. This document will provide a detailed outline of the next steps in the region's policy vision and direction for virtual assets. Additionally, the bureau plans to further optimize the preferential tax treatment for funds, single family offices, and associated entities. This includes incorporating virtual assets into eligible transactions for tax relief, thereby fostering a more favorable environment for virtual asset investments.

The introduction of virtual asset derivative trading for professional investors marks a significant development in the region's financial landscape. It underscores a growing recognition of the potential of virtual assets and the need for a regulated framework to support their growth. By focusing on robust risk management measures, the Securities and Futures Commission aims to ensure that these new financial products are introduced in a controlled and secure manner, protecting the interests of professional investors and the broader financial system.