In October 2025, the Securities and Futures Commission (SFC) of Hong Kong announced a landmark policy update at FinTech Week 2025, permitting licensed Virtual Asset Trading Platforms (VATPs) to connect their order books with globally associated platforms. This shared liquidity mechanism, supplemented by relaxed product scope and performance record requirements, addresses long-standing pain points in Hong Kong’s virtual asset market. Beyond enhancing market efficiency and investor experience, it creates a compliant pathway for overseas licensed crypto exchanges (e.g., Binance) to access the Hong Kong market without obtaining a local VATP license. This research report, based on SFC’s official circulars (Ref: 25EC56) and market dynamics, analyzes the strategic importance of shared liquidity and deciphers the regulatory logic andimplementation framework enabling overseas exchanges’ market participation.
