Key Insights:
- Hong Kong SFC allows licensed platforms to offer staking with prior approval.
- Platforms must control staked assets and disclose risks like hacking and lockups.
- Virtual asset funds can stake via licensed platforms with set liquidity caps to minimize risks for users.
Hong Kong’s Securities and Futures Commission (SFC) announced new guidelines on April 7, permitting licensed virtual asset trading platforms (VATPs) to offer staking services. The new rules aim to balance innovation with investor protection in the city’s growing digital asset market.
For context, these platforms must follow strict measures to ensure the safety of client assets while providing clear information about taking risks.
The SFC Stipulates Strict Guidelines for VATPs in Hong Kong
The Hong Kong regulator requires platforms to gain approval before offering staking services. In addition, they must maintain full control over staked assets and cannot outsource this responsibility to third parties. Also, platforms need to inform clients about risks like hacking, validator issues, and lockup periods.
Staking involves locking digital assets to support blockchain networks and earn rewards. The new rules ensure platforms safeguard these assets by preventing errors and maintaining secure operations. Moreover, they must outline fees, staking processes, and minimum client lockup times.
Virtual Asset Funds Join In
Per the SFC’s announcement, authorized virtual asset funds can now engage in staking through licensed platforms or approved institutions. The Securities and Futures Commission limits these activities to manage liquidity risks. This step aligns with Hong Kong’s broader plan to expand regulated digital asset services.
The guidelines follow the SFC’s “ASPIRe” roadmap released in February 2025. Staking falls under the roadmap’s focus on expanding product offerings in a regulated environment. Consequently, the city aims to strengthen its position as a leading Asian fintech hub.
Hong Kong’s approach differs from that of other regions like Singapore, which banned retail staking in 2023. The United States also restricts staking through regulatory actions. However, Hong Kong’s new framework supports innovation while prioritizing client safety in its digital asset ecosystem.
