Hong Kong's SFC eases crypto rules from ‘tough to tactical' – Details

Hong Kong's Securities and Futures Commission (SFC) has announced a significant easing of its crypto regulations, a move that is set to bolster the city's position as a hub for digital asset trading and investment. The new guidelines, which shift from a "tough to tactical" approach, are poised to provide a major boost for professional investors seeking exposure to the burgeoning cryptocurrency and blockchain-based tokenized asset markets.

The SFC's revised framework will now permit licensed firms to offer a wider range of crypto-related services, including trading, custody, and the management of tokenized securities and other digital assets. This shift aligns with Hong Kong's broader efforts to position itself as a friendly and supportive environment for the development of the crypto and fintech industries.

The easing of rules is expected to attract increased institutional participation, as professional investors gain greater access to the crypto ecosystem. This, in turn, could drive further growth and innovation within the Hong Kong digital asset market, solidifying the city's status as a leading global destination for cryptocurrency and blockchain-based financial activities.

Notably, the SFC's move comes at a time when other major financial hubs, such as Singapore and Dubai, are also taking steps to bolster their crypto-friendly regulations, underscoring the intensifying global competition for a share of the rapidly expanding digital assets sector. As Hong Kong embraces a more "tactical" regulatory approach, industry observers anticipate that this shift will unlock new opportunities for crypto firms, investors, and the broader ecosystem to thrive within the region.