The Hong Kong Securities and Futures Commission is taking steps to expand the local cryptocurrency market by permitting professional investors to trade crypto derivatives. This move is expected to boost trading volume and attract more institutional involvement. Preliminary data indicates that the derivatives market reached a staggering $21 trillion in traded value during the first quarter of 2025, significantly outpacing the spot market’s $4.6 trillion. The Hong Kong Legislative Council recently passed a stablecoin licensing bill to bolster regulatory oversight of virtual assets. Industry experts view the introduction of derivatives regulations as a vital part of Hong Kong’s efforts in compliance.