- Hong Kong’s SFC roadmap aims to expand crypto offerings, including staking and derivatives.
- Major crypto firms in Hong Kong actively pursue ETF staking and institutional services.
- SFC’s new framework supports crypto growth, focusing on transparency and secure services.
Major Hong Kong cryptocurrency companies are actively engaging in discussions with the Securities and Futures Commission (SFC) to expand their product offerings, potentially introducing staking services for crypto exchange-traded funds (ETFs). This latest SFC initiative aligns with its strategic roadmap to boost regional cryptocurrency growth.
SFC’s New Roadmap for Crypto Development
The Hong Kong Securities and Futures Commission (SFC) launched various initiatives on Wednesday to advance the development of the local cryptocurrency market. The roadmap outlines plans to explore new token listings, enhance margin trading capabilities, and expand derivative services, including staking, borrowing, and lending. The framework aims to balance innovation with robust investor protection measures.
Hong Kong’s crypto licensing system for ‘virtual asset trading platforms’ launched in June 2023, enabling licensed exchanges to offer retail trading services. To further solidify its status as a global cryptocurrency hub, the SFC is now working to enhance industry growth amid rising competition from new players and strengthening pro-crypto policies in the U.S.
Crypto Firms Eye Advanced Products and Staking Services
Several major licensed exchanges in Hong Kong, including HashKey and OSL, have expressed interest in offering new services, such as staking solutions for crypto-backed ETFs and other innovative products.HashKey’s chief risk officer, Haiyang Ru, stated that the exchange is in discussions with the SFC about implementing ETF staking and tokenized money market funds. HashKey plans to introduce its “Earn” feature in the upcoming period while simultaneously launching spot trading services.
According to Hex Trust, the growth of institutional staking services will rise substantially, and institutional players expect this growth to expand in 2025. New entrants in the crypto custody sector are expected to enhance yield opportunities for clients, driving further interest in staking services.
Fierce Competition for Crypto-Friendly Jurisdictions
Hong Kong’s regulatory developments come amid global competition to establish more crypto-friendly policies, with various jurisdictions introducing new frameworks to regulate digital assets. Ru of HashKey emphasized the importance of quick action as Hong Kong fights to stay competitive until 2025, when three strategic initiatives are scheduled to be completed.
Related: Hong Kong Unveils ASPIRe Roadmap to Strengthen Crypto Sector
Futu Securities is eyeing expansion into the Hong Kong market as it anticipates regulatory approval for margin trading, derivatives, and staking services. After receiving regulatory authorization the brokerage firm plans to expand its service offerings for qualified retail investors.
The SFC aims to create licensing regulations for OTC crypto trading and crypto custodian service operations. These frameworks aim to enhance transparency and reduce market abuse risks, benefiting the institutional sector. Hong Kong aims to establish itself as an institutional digital asset center, strengthening its international standing in the cryptocurrency market.
