24-2-2025 – Deribit, the globe’s foremost cryptocurrency derivatives exchange, is eyeing Hong Kong as its next strategic outpost, bolstered by the city’s recent regulatory initiatives in virtual assets.
The Securities and Futures Commission’s (SFC) fresh roadmap, unveiled Wednesday, has sparked particular interest with its proposition to introduce virtual asset derivative products for professional investors—those commanding portfolios worth at least HK$8 million. This regulatory evolution could prove pivotal for Hong Kong’s aspirations to become a virtual asset hub.
Jean-David Pequignot, Deribit’s chief commercial officer based in Hong Kong, emphasises the territory’s magnetic pull as an international financial centre, particularly noting its flourishing ecosystem of family offices and asset managers showing increasing appetite for cryptocurrency investments.
The Dubai-licensed exchange, which specialises in bitcoin and ether options trading, witnessed an impressive 95 per cent year-on-year surge in trading volume to US$1.2 trillion last year. This growth was particularly pronounced in the fourth quarter, driven by optimism surrounding the US presidential election and the subsequent bitcoin bull run towards US$100,000.
Whilst Singapore has yet to establish a regulatory framework for crypto derivative trading, Hong Kong’s potential move into this space could prove transformative. “Derivatives, while potentially speculative, serve as powerful instruments for hedging and risk management,” Pequignot explains, highlighting their crucial role in navigating the notoriously volatile crypto markets.
The Asian market holds particular appeal for Deribit, with Pequignot noting the region’s sophisticated investors who demonstrate a strong speculative inclination. The exchange, founded in 2016, is simultaneously pursuing derivatives licences in France and Brazil, whilst harbouring ambitions to serve the US market under Trump’s crypto-friendly administration.