Hong Kong Loosens Crypto Grip, Boosts Global Liquidity Access and RWA Tokenization Ambitions

Regulators Shift from Restriction to Integration as Fintech 2030 and Cross-Border Blockchain Pilots Gain Momentum

TL;DR

• Hong Kong’s SFC now allows licensed crypto exchanges to access global liquidity via shared order books with overseas affiliates.
• HKMA’s “Fintech 2030” strategy targets accelerated RWA tokenization and e-HKD rollout through over 40 new initiatives.
• A Chainlink-powered Brazil–Hong Kong pilot successfully linked CBDC networks for real-time cross-border settlement.

Hong Kong’s financial regulators are taking a calculated step toward transforming the city into a leading global hub for digital assets. The Securities and Futures Commission (SFC) has approved new rules permitting licensed virtual asset trading platforms (VATPs) to share global order books with their overseas affiliates, marking a decisive departure from the previously restrictive local-only model. The policy shift, announced at Hong Kong Fintech Week on November 3 and formalized in a circular the following day, is being described by the SFC as a move “from tough to tactical.”

The previous ring-fenced framework forced licensed exchanges to match trades exclusively within Hong Kong, a constraint that limited liquidity and often resulted in wider spreads and reduced competitiveness. Under the revised rules, platforms can now link their Hong Kong operations to global liquidity pools, subject to prior written SFC approval and strict operational safeguards. These include prefunded orders, a local compensation fund for settlement failures, and joint surveillance arrangements between Hong Kong entities and overseas affiliates. The regulator emphasized that the reform aims to enhance market depth while maintaining investor protections, noting that Hong Kong investors “stand to benefit from enhanced market liquidity and more competitive pricing.”

SFC CEO Julia Leung underscored the intent behind the change, stating that the city seeks to “build a trusted, globally competitive and sustainable ecosystem.” Although the rule easing primarily benefits professional and institutional investors for now, retail access remains governed by existing thresholds such as portfolio size and accreditation requirements. Market analysts say the new structure could narrow bid-ask spreads and improve price discovery as exchanges begin integrating global order flows, though full effects will depend on how quickly platforms adapt their systems, custody protocols, and compliance layers.

The timing of the announcement aligns with the Hong Kong Monetary Authority’s (HKMA) unveiling of its “Fintech 2030” strategy, a sweeping roadmap organized around four pillars: Data, Artificial Intelligence, Resilience, and Tokenization—collectively branded as DART. The framework outlines more than 40 initiatives aimed at digitizing and modernizing the city’s financial infrastructure. Among its core objectives is the acceleration of real-world-asset (RWA) tokenization, including government bonds, fund units, and real estate instruments, alongside continued testing of the e-HKD central bank digital currency. Plans include tokenized government bond issuances and eventual deployment of tokenized Exchange Fund papers to streamline capital markets operations.

Beyond regulatory reform and fintech planning, Hong Kong is also advancing its cross-border blockchain experimentation. A high-profile pilot announced on November 3 connected Brazil’s Drex CBDC network with Hong Kong’s Ensemble platform using Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Runtime Environment (CRE). The trial, jointly conducted by Banco Inter, Chainlink Labs, the Central Bank of Brazil, the HKMA, Standard Chartered, the Global Shipping Business Network, and 7COMm, achieved real-time settlement of trade transactions through delivery-versus-payment (DvP) and payment-versus-payment (PvP) smart contract frameworks. Banco Inter executive Bruno Grossi said the collaboration “is building a more connected financial ecosystem that underpins the future of global trade.”

Analysts viewed the cross-border success as both a technological milestone and a signal of Hong Kong’s broader intent to integrate blockchain-based settlement into global trade infrastructure. Meanwhile, investor attention turned to Chainlink’s native token, LINK, as the project’s expanding role in institutional-grade interoperability prompted analysts to eye a $15 buy zone. While the pilot was not retail-focused, it demonstrated a tangible use case for blockchain in central bank-backed settlement systems.

Together, these developments—regulatory liberalization, tokenization acceleration, and cross-border experimentation—illustrate Hong Kong’s pivot from regulatory rigidity to strategic adaptation. The city’s regulators appear determined to position Hong Kong as Asia’s center for tokenized assets and interoperable digital finance infrastructure. Whether these moves translate into deeper market liquidity and sustained institutional participation will depend on execution in the months ahead, but the direction is clear: Hong Kong’s crypto strategy is no longer about containment—it’s about controlled expansion.

This article has been refined and enhanced by ChatGPT.