Hong Kong is moving to enhance its position as a crypto hub by allowing local exchanges to connect with global liquidity pools through shared order books. The Hong Kong Securities and Futures Commission (SFC) released two circulars that enable SFC-licensed exchanges to access this global liquidity, but they must first obtain approval from the SFC. This change marks a significant shift from the current model, where transactions are settled within Hong Kong's borders. The new framework aims to provide local investors with better price discovery and more competitive prices. SFC Chief Executive Officer Julia Leung emphasized the need for a balanced regulatory environment, highlighting the risk of overly strict regulations driving talent and liquidity away from Hong Kong to jurisdictions with lighter oversight. In a related move, the SFC also exempted tokens and stablecoins licensed by the Hong Kong Monetary Authority from the usual 12-month trading history requirement for professional investors. These regulatory relaxations come as Hong Kong faces increasing competition from other regions, particularly after the election of pro-crypto U.S. President Donald Trump. The SFC is actively evaluating its rules to foster a trusted and sustainable crypto ecosystem while ensuring adequate oversight.