Hong Kong Securities and Futures Commission: Bringing Spot Virtual Asset ETFs and Pledge Services Under Regulation

At the 2025 Caixin Summer Summit, Hong Kong Securities and Futures Commission CEO Leung Fung-yee said that Hong Kong is accelerating the construction of a "compliant, risk-controlled, and sustainable" virtual asset ecosystem to further promote the coordinated development of financial innovation and regulatory frameworks.

Leung Fung-yee pointed out that the SFC has clearly supported the establishment of spot virtual asset ETFs and included pledge services in the regulatory scope, aiming to provide investors with safer and regulated trading channels. At the same time, virtual asset custody service providers and over-the-counter trading platforms will also be included in the regulatory scope to gradually improve the compliance foundation of the industry chain.

In terms of financial infrastructure, the SFC is promoting the tokenization of securities assets and exploring the integration of blockchain technology and traditional financial business to improve transaction efficiency and cross-border payment convenience. In addition, Hong Kong is also strengthening regulatory guidelines for financial technologies such as generative artificial intelligence to encourage related innovation and development on the premise of ensuring system security and market stability.

Leung Fung-yee said that the relevant measures are aimed at consolidating Hong Kong's position as an international financial center and enhancing its competitiveness in the global virtual asset and financial technology fields.