Futu Gets SFC Nod for Securities-Backed Crypto Financing in HK

The new financing line introduces a two-tier collateral system. In February the SFC published a circular that relaxed rules for accepting virtual assets as collateral for margin. The regulator maintained a 100% capital deduction on any crypto posted as collateral until the Securities and Futures (Financial Resources) Rules are revised. That deduction erodes the capital efficiency of using crypto directly as margin. The securities-backed route avoids the penalty, making it the more attractive option for clients who want leverage on existing portfolios.

The approval fits into Hong Kong's broader push to bring digital assets under traditional financial rules. In May 2026 the Financial Services and the Treasury Bureau and the SFC finalized proposals for licensing virtual asset advisory and portfolio management services. The plan extends oversight beyond trading platforms, custody providers, and stablecoin issuers. Legislation is expected to be submitted to the Legislative Council during 2026.

For investors who hold a stock or ETF portfolio with Futu, the new line adds leverage capacity without selling existing positions. The 100% deduction on crypto collateral means the securities route will remain the capital-efficient way to borrow against digital assets until the FRR are rewritten. That could shift how clients allocate margin between asset classes.

The SFC has not set a date for the capital requirement revisions. The February circular only stated the deduction would stay in place until the rules change. The next legislative milestone is the bill submission later this year.