Hong Kong’s Securities and Futures Commission (SFC) has introduced new guidelines allowing licensed virtual asset trading platforms to offer staking services. This regulatory shift aims to enhance investor protection, ensuring that platforms safeguard staked assets and provide full disclosure of associated risks2.
The SFC’s updated framework mandates that licensed crypto platforms offering staking services must implement strict risk reduction measures, including asset protection protocols and transparent risk disclosures.
These guidelines are designed to boost blockchain security while enabling investors to earn regulated staking rewards. Additionally, the SFC has revised its circular on SFC-authorized virtual asset funds, permitting them to stake assets through licensed platforms or approved institutions.
However, to mitigate liquidity risks, the SFC has imposed staking caps, ensuring that funds maintain adequate liquidity while participating in staking activities.
The introduction of staking services aligns with Hong Kong’s broader strategy to position itself as a global crypto hub. The SFC’s ASPIRe framework—which focuses on Access, Safeguards, Products, Infrastructure, and Relationships—aims to streamline market access and strengthen investor protections
Shogun Lin
