Securities and Futures Commission, Hong Kong’s securities regulator, plans to allow professional investors to trade cryptodaterivates that mark a significant expansion of territorial virtual asset market offerings, according to a report from China Daily.
Crypto derivatives are a significantly larger market than spot trading. TokenInInsight data shows that the Crypto Derivatives market pushed through $ 21 trillion in volume for the first quarter of the year compared to $ 4.6 trillion in spot volume.
Stakeholders in the industry have long called for Hong Kong to licenses cryptoderivats.
In a speech with the South China Morning Post earlier this year, Jean-David Péquignot, Chief Commercial Officer for Deribit, said one of the largest derivative exchange, Crypto Derivatives was a lack of piece of legislation for Hong Kong.
Hong Kong’s Legislative Council, its parliamentary body, recently passed a bill that would allow for a license to stablecoins in the city.
