Breaking news! The Hong Kong Securities and Futures Commission has approved local exchanges to share global order books, embracing encryption liquidity.

On November 3, 2025, the Hong Kong Securities and Futures Commission (SFC) issued two important circulars, approving licensed virtual asset trading platforms in Hong Kong to share global order books with their associated overseas trading platforms. This move marks a shift from the existing model where orders need to be pre-funded and settled domestically, aiming to enhance the liquidity and price discovery efficiency of local exchanges, thus helping Hong Kong become a global encryption hub. In addition, stablecoins issued by the Hong Kong Monetary Authority (HKMA) have also been exempted from the 12-month trading history requirement needed for sales to professional investors.

Policy Breakthrough: Shared Order Book Attracting Global Cryptocurrency Liquidity

The latest guidelines from the Hong Kong SFC are the first step in the “Access” pillar of its ASPIRe roadmap, clearly aimed at attracting global platforms, trading flows, and liquidity providers to enhance the competitiveness of Hong Kong's virtual asset ecosystem.

• Break geographical restrictions: New regulations allow licensed virtual asset trading platforms in Hong Kong to share trading instructions with associated overseas trading platforms and consolidate them into a shared order book.
• Enhancing Liquidity and Pricing: SFC Chief Executive Julia Leung stated that this integration will enable local investors to effectively leverage global market liquidity for better price discovery and more competitive pricing. This stands in stark contrast to the previous model where orders needed to be pre-funded and settled domestically.
• Strict approval process: It is worth noting that platform operators must obtain written approval from the SFC in advance to carry out this operation, in order to ensure that additional risks are minimized under sound protective measures.

Expand Product Range: Exempt Stablecoin Trading History, Explore Tokenized Securities

In addition to connecting global liquidity, another circular from the SFC focuses on expanding the product and service offerings of local licensed platforms to optimize the “Products” pillar.

• Exemption from 12-month historical requirements: The SFC allows platform operators to issue virtual assets without a 12-month track record to professional investors, as well as stablecoins licensed by the Hong Kong Monetary Authority. This exemption aims to facilitate the launch of new products.
• Custody service expansion: Entities related to platform operators can now provide custody services for virtual assets or tokenized securities that are not bought or sold on the relevant platform, further expanding the scope of services.
• Exploring Brokerage Referrals: The SFC's next step is to explore the feasibility of licensed brokerages referring client trading instructions to regulated overseas liquidity pools within the same group.

Intensifying Global Competition: Seeking an Ideal Balance Between Innovation and Regulation

Hong Kong's recent move to relax regulations is a strategic adjustment made against the backdrop of intensifying competition in the global encryption market, especially following changes in pro-encryption policies in the United States.

• Competitive pressure: The SFC acknowledges that overly strict requirements may push liquidity and talent towards jurisdictions with more relaxed regulations.
• Balancing Innovation and Trust: Julia Leung emphasized that steadily expanding market liquidity and commercial products and services is key to driving the sustainable development of Hong Kong's digital asset ecosystem. Hong Kong is committed to achieving an ideal balance between promoting market innovation vitality and upholding high standards of investor protection and ensuring market integrity.

Conclusion

The approval by the Hong Kong Securities and Futures Commission for licensed exchanges to share a global order book is undoubtedly a milestone in its efforts to establish an international virtual asset center. This transformative policy will not only significantly enhance the liquidity and price competitiveness of the local market but also sends a strong signal to the world that Hong Kong is actively embracing innovation in the encryption industry. For investors and global encryption platforms, the regulatory clarity and open stance of Hong Kong are making it an ideal gateway to connect the digital asset markets of the East and West.