Futu wins SFC approval for securities backed crypto trading financing in Hong Kong

Futu Securities has received approval to expand its Type 1 licensed activities in Hong Kong, allowing eligible clients to use securities-backed financing for virtual asset trading.

According to local media, Hong Kong’s Securities and Futures Commission has approved an upgrade to Futu Securities’ Type 1 (securities trading) license, enabling the brokerage to roll out virtual asset trading financing services for qualified investors in the city.

Under the new arrangement, clients can use traditional securities as collateral to obtain financing for cryptocurrency transactions. Credit facilities obtained through conventional securities margin accounts were previously unavailable for crypto trading, but the approval removes that restriction and permits those funds to be used in the virtual asset market.

The launch makes Futu the first brokerage in Hong Kong to offer such a service, according to the report. By extending financing capabilities into digital asset trading, the company has added another crypto-related product to a platform that already supports stocks, exchange-traded funds, options, funds, bonds, and cryptocurrencies.

Financing expansion follows crypto push

Over the past years, Futu has steadily added digital asset services to its platform. In May 2025, the brokerage introduced crypto deposit services for Bitcoin, Ethereum, and Tether, allowing eligible investors to deposit and trade virtual assets through its trading app.

At the time, Futu said users could move between cryptocurrencies and traditional investment products from a single account.

Crypto trading itself was introduced in 2024, after the firm secured a securities license upgrade that allowed it to provide virtual asset services to both retail and professional investors. The company has positioned its platform as a place where users can access traditional and digital assets through the same interface.

Attention has also turned to how collateral can be used in crypto-related financing. While the SFC issued a circular in February that relaxed restrictions on virtual assets being accepted as collateral, the regulator stated that virtual asset collateral would remain subject to a 100% deduction under the Securities and Futures (Financial Resources) Rules until capital requirement revisions take effect.

According to the SFC circular cited in the report, that treatment could create operational challenges for firms seeking to use virtual assets directly as margin collateral because the current rules reduce the capital efficiency of those holdings.

The approval arrives as Hong Kong continues to expand its regulatory framework for digital assets. In May 2026, the Financial Services and the Treasury Bureau and the SFC finalized consultation conclusions on proposed licensing regimes for virtual asset advisory and portfolio management services, extending oversight beyond trading platforms, custody providers, and stablecoin issuers.

Authorities said the planned framework would apply traditional financial regulatory standards to virtual asset activities, with legislation expected to be submitted to the Legislative Council during 2026.