Here's a revised version of the title that is more engaging and SEO-friendly, while maintaining relevance and professionalism: "Hong Kong Embraces Crypto Derivatives, Positioning Itself as a Global Fintech Hub

Hong Kong to Introduce Virtual Asset Derivatives Trading for Professional Investors

Hong Kong's securities regulator is taking steps to strengthen its position in the global digital asset market by introducing virtual asset derivatives trading for professional investors.

The Securities and Futures Commission (SFC) emphasized that these trades will be conducted with strict adherence to order, transparency, and security, with a strong focus on risk management.

Hong Kong treasury chief Christopher Hui Ching-yu explained that this initiative expands the range of virtual asset products and services available to investors, continuing the city's efforts to diversify its financial offerings.

• The SFC has already approved staking services for virtual assets, providing investors with opportunities for additional returns
• Virtual assets will qualify for tax concessions, a move designed to attract major international fintech firms to establish operations in Hong Kong

These new derivative options are expected to facilitate efficient risk transfers, increase liquidity in spot markets, and provide professional investors with tools for hedging and leveraging strategies.

Hui noted that the treasury will detail these policy directions in an upcoming statement, exploring how to combine traditional financial services with innovative technologies to support the virtual asset market and improve real economy flexibility, ultimately encouraging both domestic and international business growth.

This development follows recent SFC approvals allowing two licensed virtual asset trading platforms to offer staking services, along with the introduction of two virtual asset spot ETFs that now include staking capabilities.

Hui highlighted that these products have "expanded Hong Kong's market diversity, reinforcing its status as Asia's premier ETF market." The SFC reports that global virtual asset markets currently see annual trading volumes exceeding $70 trillion.