Futu Securities has received approval from the Hong Kong Securities and Futures Commission (SFC) to enhance its Type 1 (Securities Trading) service, enabling the launch of virtual asset trading financing services for eligible clients in Hong Kong. This development allows clients to use traditional securities as collateral for cryptocurrency trading, a shift from previous restrictions. The SFC's recent circular, issued in February, relaxed the use of virtual assets as collateral. However, it mandates a 100% deduction for virtual asset collateral under the Securities and Futures (Financial Resources) Rules until capital requirements are revised. This stipulation may challenge the industry's capital utilization efficiency.