Hong Kong Crypto Exchange Licensing Reform: Fintech Week 2025 Signals Global Integration Move

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Hong Kong is stepping up its game in the crypto world. In a major move announced at the Hong Kong Fintech Week, the city’s financial regulator said that licensed crypto exchanges will now be able to connect with global markets, breaking away from the city’s current isolated trading setup. This marks a major shift in Hong Kong’s strategy to attract global crypto players and align its digital asset rules with traditional finance systems.

Connecting Hong Kong to Global Liquidity

Under the new framework, exchanges licensed by the Securities and Futures Commission (SFC) will soon be allowed to link their Hong Kong-based operations with global order books, allowing for greater liquidity and smoother trading. Until now, exchanges operating in Hong Kong were restricted to trading within the city, limiting growth and global reach.

SFC chief Julia Leung said the change would help align the city’s crypto regulations with those already in place for traditional markets. A detailed circular explaining the new rules is expected soon, signaling Hong Kong’s push to become more competitive internationally.

A Bid to Revive Hong Kong’s Crypto Edge

Since 2022, Hong Kong has been working to regain its position as a crypto hub after years of regulatory uncertainty. The city introduced licensing systems for exchanges, launched Bitcoin and Ether exchange-traded products (ETPs), and approved digital-asset funds.

However, trading activity in Hong Kong still trails behind the U.S., where President Donald Trump’s administration has been far more welcoming to the crypto industry. Leung admitted Hong Kong has been “on the tougher side,” but said regulators are ready to ease restrictions once investor protection is ensured.

Stablecoins and Token Rules on The Line

The SFC and the Hong Kong Monetary Authority (HKMA) are also preparing new licensing systems for crypto dealers, custodians, and stablecoin issuers. The first stablecoin licenses are expected by next year, marking another big step in building a regulated digital finance ecosystem.

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In addition, the SFC will ease listing rules for new tokens and HKMA-approved stablecoins, scrapping the 12-month track record requirement for professional investors. This will make it easier for new projects to be listed in Hong Kong.

Aiming for a Global Fintech Future

Hong Kong also unveiled its “LEAP” framework, focused on legal clarity, ecosystem growth, and real-world adoption. The plan includes tokenizing government bonds, ETFs, and even real-world assets like gold and solar energy projects.

If fully implemented, these reforms could make Hong Kong one of the most crypto-friendly financial centers in Asia, offering global access, regulatory clarity, and new opportunities for both investors and crypto firms.

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