The world’s major crypto futures markets may face regulatory reforms: What will Hong Kong do next?


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The world’s major crypto futures markets may face regulatory reforms: What will Hong Kong do next?

According to new research by, the proposed regulations for the Hong Kong blockchain industry may have a profound impact on the crypto derivatives market.

In a report published on Wednesday, researcher Mira Christanto said that the Hong Kong Special Administrative Region is the main cryptocurrency futures trading market. As part of strengthening supervision, the Hong Kong Special Administrative Region may crack down on unregulated exchanges.

The researcher cited a recent recommendation made by the Securities and Futures Commission (SFC) of Hong Kong, which requires all encryption businesses to comply with anti-money laundering regulations. This is very different from the Hong Kong Securities Regulatory Commission announced a year ago that it only supervises companies in the “securities” field.

Previously, SFC only regulated assets that met the definition of securities or futures laws-this definition excluded cryptocurrencies.

As Cointelegraph reported earlier this month, the Hong Kong government has proposed to bring all crypto assets under the supervision of its securities regulator. This regulatory effort seems to be part of a global control of cryptocurrency exchanges, and the regulation may be under the guise of money laundering.

As Messari pointed out, Hong Kong happens to be the most important player in the crypto futures market. Nearly three-quarters (72%) of Ethereum (ETH) futures and 57% of Bitcoin (BTC) futures come from the Hong Kong Special Administrative Region.

Christanto stated:

“Many people don’t realize the role Hong Kong plays in the global cryptocurrency field. Hong Kong is the headquarters of some large companies and dominates the growing futures market.”

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Hong Kong has a large number of cryptocurrency exchanges and market service companies, including BitMEX, Bitfinex, and FTX. Exchanges such as OKEx, Huobi and Bybit have regional offices in Hong Kong. Large industry players such as Tether, Cardano and EOS’s publisher are also located in Hong Kong.

If the new proposal is passed into law, companies that continue to operate without a license may face severe penalties. Executives of companies operating these platforms may even be sentenced to jail.

As Messari pointed out, so far, only two crypto financial services companies have obtained licenses in Hong Kong.