- SFC permits licensed platforms to offer staking services under strict conditions.
- Regulations require risk management, asset safeguards, and transparent disclosures.
- Decision aligns with Hong Kong’s “ASPIRe” roadmap for cryptocurrency sector growth.
Hong Kong’s Securities and Futures Commission (SFC) has issued formal regulatory guidance that permits licensed Virtual Asset Trading Platforms (VATPs) to offer staking services. The announcement provides a clear framework for both trading platforms and SFC-authorized funds that wish to participate in staking activities.
This move reflects Hong Kong’s balanced approach to cryptocurrency regulation. It also acknowledges the benefits of staking in blockchain network security while ensuring appropriate safeguards for retail participants. This development aligns with the “ASPIRe” roadmap, previously established by the SFC, to develop Hong Kong’s virtual asset ecosystem.
“Broadening the suite of regulated services and products is crucial to sustain the healthy advancement of Hong Kong’s virtual asset ecosystem,” said Julia Leung, CEO of the SFC. Under the new guidelines, licensed platforms offering staking services must implement measures to manage potential risks effectively. These requirements include protocols to prevent errors associated with staking operations. It also includes safeguards for client assets during the staking process, and clear disclosures about the specific risks that staked assets may face.
The regulatory approach also extends to SFC-authorized funds with exposure to virtual assets. These investment vehicles will be permitted to participate in staking activities. However, this will be possible only through approved channels, including licensed virtual asset trading platforms and authorized financial institutions. Additionally, these funds will be subject to staking caps designed to mitigate liquidity risks that could arise from having substantial portions of assets locked in staking contracts.
Hong Kong’s regulatory clarity on staking stands in contrast to the approaches taken by some other jurisdictions, where uncertainty around staking services has limited their availability or pushed activities into unregulated channels. By establishing clear guidelines, Hong Kong aims to enhance innovation while maintaining appropriate investor protection standards.
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The guidance forms part of Hong Kong’s broader strategy to position itself as a hub for regulated cryptocurrency activities. The “ASPIRe” roadmap, which has mentioned five pillars for developing the virtual asset ecosystem, emphasizes the importance of expanding regulated product and service offerings.
For cryptocurrency investors and businesses operating in Hong Kong, the new framework provides clarity while imposing reasonable safeguards. Licensed platforms must ensure that their staking operations comply with the SFC’s requirements, including maintaining appropriate risk management systems and disclosure practices.
