Hong Kong's Securities and Futures Commission has approved an upgrade to Futu Securities' Type 1 (securities trading) license, enabling the brokerage to offer margin trading services for virtual assets to eligible clients in the city. According to Aastocks reports, this approval makes Futu the first brokerage in Hong Kong to offer such comprehensive margin trading capabilities for cryptocurrency transactions. The upgrade represents a significant expansion of the platform's crypto offerings as Hong Kong continues to build out its digital asset regulatory framework.
Under the new arrangement, eligible clients can now use traditional securities as collateral for margin trading in cryptocurrency transactions. As reported by ChainCatcher, this approval removes the previous restriction where credit lines obtained through traditional securities margin trading could not be applied to cryptocurrency transactions. The launch adds margin trading capabilities to a platform that already supports stocks, exchange-traded funds, options, funds, bonds, and cryptocurrencies, providing clients with enhanced asset allocation strategies for margin trading.
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. 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 latest margin trading approval represents another significant milestone in the platform's digital asset evolution.
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. However, Aastocks reports that while the SFC's February circular relaxed rules permitting virtual assets as collateral, it also stated that prior to revisions to capital requirements, virtual asset collateral will be subject to a 100% haircut under the Securities and Futures (Financial Resources) Rules. This regulatory structure is expected to pose certain challenges to capital efficiency within the industry during practical implementation.
