The post Crypto News: Hong Kong SFC Approves Crypto Margin Financing and Perpetuals appeared on BitcoinEthereumNews.com.

Hong Kong SFC permits crypto margin financing and sets perpetual contract framework, aiming to boost liquidity, safeguards, and investor participation. Hong Kong’s securities regulator announced major virtual asset policy changes on Wednesday. It will allow crypto margin finance and introduce rules for perpetual contracts. The move is an indication of greater institutional integration of digital assets. SFC Opens Door to Regulated Crypto Margin Financing According to the Securities and Futures Commission, licensed brokers are now allowed to extend virtual asset financing. This service is available to securities margin clients with stringent collateral and credit requirements. At first, only Bitcoin and Ether qualify as eligible collateral assets. Related Reading: Hong Kong Enacts Stablecoin Ordinance, Begins License Processing | Live Bitcoin News The regulator said that the safeguards remain central to the new framework. Brokers must look at risk exposure, collateral sufficiency, and client suitability before approvals. As a result, controlled growth rather than speculative expansion is expected in the authorities. Meanwhile, the SFC proposed a high-level structure of virtual asset trading platforms. The guidance is for perpetual contracts, which are only for professional investors. These instruments provide leveraged exposure with no traditional expiry dates. Furthermore, the framework has a focus on transparent product design and disclosure standards. Platforms need to clearly explain leverage mechanics, liquidation risks, and pricing methodologies. The rationale behind this requirement is to enhance investor protection and operational discipline. In addition, there needs to be strong controls in place with respect to margin management and settlement procedures. Risk engines should keep track of volatility, exposure concentration, and collateral adequacy all the time. Therefore, compliance teams will have a greater supervisory role. Perpetual Contracts Framework Targets Professional Investors The SFC also authorized affiliates of licensed platforms to act as market makers. However, tight conflict-of-interest safeguards have to be in…

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Filed under: News - @ February 11, 2026 9:18 pm