[Hong Kong SFC Allows Virtual Asset Trading Platforms to Share Liquidity and Establish Compensation Mechanisms] The Hong Kong Securities and Futures Commission (SFC) has issued a circular titled 'Circular on Sharing of Liquidity among Virtual Asset Trading Platforms,' approving licensed virtual asset trading platforms to integrate order books with eligible overseas platforms to share liquidity, thereby enabling cross-platform trade matching and execution. Relevant platforms are required to adopt Delivery Versus Payment (DVP) mechanisms, intraday settlement, and monitoring of unsettled transaction limits. Additionally, they must establish reserve funds and insurance or compensation arrangements in Hong Kong that align with the scale of the limits to cover settlement asset risks. Furthermore, market surveillance must be implemented uniformly, ensuring that trading and customer data can be immediately provided to the SFC. Before serving retail clients, platforms must conduct adequate risk disclosures, obtain client consent, and submit a written approval application with relevant terms and conditions attached.

[October DEX Trading Volume Reaches $613.3 Billion, Setting a New Historical High] In October, the trading volume of decentralized exchanges (DEX) increased from nearly $500 billion in September to $613.3 billion, setting a new historical high, primarily due to traders adjusting their portfolio allocations. According to DefiLlama data, Uniswap ranked first with a monthly trading volume of $170.9 billion, up from $106.5 billion in September. PancakeSwap ranked second, with an October trading volume of $101.9 billion, rising from $79.8 billion in September. Meanwhile, centralized exchange (CEX) trading volume also reached $2.17 trillion in October, the highest level since January 2025, representing an approximately 28% increase from $1.69 trillion in September.

[Hong Kong SFC Issues New Guidelines to Promote Development of Virtual Asset Trading Platforms] The Hong Kong Securities and Futures Commission (SFC) has issued two new circulars to clarify operational standards for licensed virtual asset trading platforms, aiming to enhance global liquidity and expand the range of product services. The SFC allows platforms to share order books with affiliated overseas trading platforms to boost cross-platform trading liquidity and plans to explore the feasibility of licensed brokers transferring client trading instructions to regulated overseas liquidity pools. Additionally, the SFC permits platforms to sell virtual assets, stablecoins, and tokenized securities without a 12-month track record to professional investors and allows related entities to provide custody services.

[Hong Kong SFC Allows Platforms to Offer Virtual Assets and Stablecoins Without 12-Month Performance Records] The Hong Kong Securities and Futures Commission (SFC) announced that platform operators can offer virtual assets without a 12-month performance record to professional investors, while also allowing the issuance of stablecoins by licensed institutions in Hong Kong. This policy aims to further regulate the operation of virtual asset trading platforms and promote the development of Hong Kong's digital asset market. (UTC+8)

[Hong Kong Monetary Authority to Launch Ensemble Project Pilot Program to Promote Asset Tokenization Development] Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), outlined the 'Fintech 2030' vision in his opening speech at Fintech Week, aiming to position Hong Kong as a robust, resilient, and forward-looking international fintech hub. The HKMA will focus on four key areas, encompassing more than 40 specific projects, including promoting financial tokenization and building an active tokenization ecosystem. The HKMA plans to provide a demonstration for asset tokenization through the regular issuance of tokenized government bonds and will study the feasibility of tokenizing Exchange Fund Bills and bonds. Additionally, the HKMA is set to launch the Ensemble Project pilot program to support applications in real-world transaction scenarios and will continue collaborating with industry stakeholders and other central banks to explore innovative tokenization use cases.