Hong Kong SFC Issues High-Level Framework for Virtual Asset Perpetual Contracts, February 2026

On 11 February 2026, the Securities and Futures Commission of Hong Kong (SFC) published a policy statement titled "A high-level framework for virtual asset perpetual contracts offering by virtual asset trading platforms" (the Framework). The Framework is issued under the SFC's ASPIRe Roadmap, Pillar P (Products), and establishes the SFC's approach for SFC-licensed virtual asset trading platform operators (Platform Operators) seeking to offer virtual asset perpetual contracts (Perps) to clients. The Framework is a guidance document at the policy statement stage; it does not constitute a binding rule or final regulation. Platform Operators interested in offering Perps must submit their proposed product structure to the SFC for review against the principles set out in the Framework before any offering commences.

The controlling authority is the SFC acting under the Securities and Futures Ordinance (Cap. 571) and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615). The Framework defines Perps as leveraged instruments offered on-platform, designed to track an underlying virtual asset or index price, with no expiry date, and incorporating periodic funding rate payments between long and short position holders to align the contract price with the spot market price. Eligible reference assets must be virtual assets available for spot trading by retail clients on the Platform Operator's platform, or an index of such assets administered in compliance with the IOSCO Principles for Financial Benchmarks. The Framework mandates specific product design standards covering: transparent methodologies for Key Parameters (mark price, reference asset price, funding rate, position valuation), mandatory funding rate settlement at least once every 24 hours, multi-source price inputs to prevent manipulation by a single entity, automated pre-trade margin checks, and explicit default management sequencing (order-book liquidation, backstop liquidity providers, reserve/insurance fund, auto-deleveraging).

Perps may only be offered to professional investors as defined in section 1 of Part 1 of Schedule 1 to the Securities and Futures Ordinance. Before providing Perp trading services, Platform Operators must assess each client's knowledge of derivatives under paragraphs 5.1A and 5.3 of the SFC's Code of Conduct for Persons Licensed by or Registered with the SFC. Margin collateral must be in the form of fiat or stablecoins or tokenized deposits regulated by the Hong Kong Monetary Authority. Platform Operators must disclose real-time insurance fund levels to clients, issue post-event reports within 24 hours whenever auto-deleveraging or last-resort mechanisms are activated, and conduct regular stress testing of trading systems. Cross-market surveillance covering both spot and Perps trading is required. Licensed VATPs currently not offering derivatives must obtain SFC approval before launching any Perp product; no Perps may be offered to retail investors under the current Framework.

The Framework does not set a retail-investor access pathway for Perps at this stage; the professional investor restriction applies to all Perp activity on licensed platforms. The SFC states the Framework "may be refined or expanded in light of product evolution and changing market conditions" and may issue further guidance after considering Platform Operator proposals. No deadline is imposed for Platform Operators to submit proposals, but any VATP wishing to offer Perps must discuss the proposed structure with the SFC before doing so. The Framework does not address unregulated or offshore Perp platforms that are not licensed by the SFC and that target Hong Kong residents — those remain outside the licensed VATP perimeter and subject to existing enforcement posture.

Source: Securities and Futures Commission of Hong Kong, "A high-level framework for virtual asset perpetual contracts offering by virtual asset trading platforms," Policy Statement, 11 February 2026. Official URL: https://www.sfc.hk/en/News-and-announcements/Policy-statements-and-announcements/A-high-level-framework-for-virtual-asset-perpetual-contracts-offering-by-VATP. Confirmed: 5 March 2026.

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