The Securities and Futures Commission of Hong Kong (SFC) has granted local cryptocurrency exchanges permission to connect to the global order books of their affiliated foreign platforms. This decision aims to enhance liquidity and optimize pricing in the digital asset market.
This is reported by Business • Media
New Rules for Crypto Exchanges in Hong Kong
According to the updated SFC requirements, licensed crypto exchanges in Hong Kong can now consolidate their order books with affiliates operating outside the jurisdiction. This approach allows traders to access significantly deeper liquidity pools, more competitive prices, and reduced spreads between buying and selling assets.
At the same time, integration with global order books will only be possible with prior written approval from the SFC. Exchanges must implement effective measures to manage operational and settlement risks, as well as ensure mechanisms to prevent market abuse.
Security Requirements and Future Initiatives
Currently, all transactions on licensed platforms in Hong Kong must be pre-funded and settled exclusively within the region. The introduction of a “shared order book” will allow some transactions to be conducted with counterparties outside of Hong Kong, which could positively impact trading dynamics and enhance the attractiveness of local exchanges for investors.
“SFC has allowed shared order books for licensed platforms.”
It was previously reported that the Hong Kong Monetary Authority (HKMA) plans to require the disclosure of the identity of every stablecoin holder, which is an additional step towards increasing transparency in the digital asset market in the country.