The Securities and Futures Fee, Hong Kong’s securities regulator, is planning to permit skilled traders to commerce crypto derivatives, marking a major growth of the territory’s digital asset market choices, in accordance to a report from China Daily.
Crypto derivatives are a significantly bigger market than spot buying and selling. Data from TokenInsight shows that the crypto derivatives market pushed by means of $21 trillion in quantity for the primary quarter of the yr, in comparison with $4.6 trillion in spot quantity.
Stakeholders within the trade have lengthy referred to as for Hong Kong to license crypto derivatives buying and selling.
Speaking to the South China Morning Post earlier this yr, Jean-David Péquignot, chief business officer of Deribit, one of many largest derivatives exchanges, stated crypto derivatives guidelines have been a lacking piece of laws for Hong Kong.
Hong Kong’s legislative council, its parliamentary physique, recently passed a bill that will enable for the licensing of stablecoins within the metropolis.