Hong Kong SFC: Licensed virtual asset trading platforms will be allowed to connect to overseas liquidity through affiliated overseas platforms

Jinse Finance reported that on November 3, Leung Fung-yee, CEO of the Hong Kong Securities and Futures Commission (SFC), stated at Hong Kong Tech Week 2025 that the SFC's new policy will allow licensed virtual asset trading platforms to connect with overseas liquidity through affiliated overseas platforms, while implementing multiple safeguards to reduce settlement and integrity risks. For example, overseas virtual asset trading platforms are required to implement delivery-versus-payment and prepayment arrangements, establish a reserve fund in Hong Kong for compensation purposes, and launch a joint supervision program, aiming to strike an appropriate balance between convenience and protection. She emphasized that Hong Kong's regulatory regime is renowned for its visibility and transparency, providing clarity, certainty, and consistency for the market, thereby enhancing the confidence of market participants and supporting sustainable market development. The SFC has taken the lead in adopting the principle of "same business, same risk, same rules," actively participating in the International Organization of Securities Commissions' development of regulatory principles for central digital asset platforms, and promoting the adoption of similar standards in regulatory frameworks, including the Markets in Crypto-Assets Regulation. These coordinated efforts help strengthen connections and interoperability between markets.