In a significant move to enhance oversight in the cryptocurrency space, Hong Kong’s Securities and Futures Commission (SFC) has introduced a new set of rules governing staking activities on licensed virtual asset trading platforms and SFC-authorised investment funds. The updated guidelines are part of the city’s broader strategy to establish itself as a global hub for digital assets while prioritizing investor protection and market integrity.
The fresh regulations clarify how staking services can be offered within a compliant framework. By allowing licensed platforms to provide staking opportunities, the SFC is supporting innovation in the sector, particularly by enabling investors to earn yields and contribute to blockchain security through regulated channels. The move aligns with Hong Kong’s ongoing push to legitimize and expand the local virtual asset market under its “ASPIRe” initiative.
Staking, while potentially profitable for users, carries inherent risks, something the SFC is determined to manage. Platforms offering staking services are now required to implement stringent safeguards. This includes ensuring the safety of staked assets, minimizing operational errors, and maintaining transparency about the associated risks. These requirements are aimed at building investor confidence and establishing a higher standard of accountability in the ecosystem.
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The revised approach also affects SFC-authorised virtual asset funds. Under the new rules, these funds are permitted to stake assets, but only through regulated and approved institutions. To limit exposure and protect investors, the SFC has introduced caps on the amount that can be staked. This measured approach ensures that staking does not compromise fund liquidity or overall market stability.
SFC CEO Julia Leung emphasized that expanding the suite of regulated digital asset services is a strategic priority, but added that this must be balanced with strong regulatory practices. According to her, investor protection should remain at the core of all developments in the space, regardless of how quickly the industry evolves.
These regulatory updates are just one part of a larger vision. Earlier this year, the SFC revealed plans to launch new licensing frameworks for over-the-counter trading platforms and custody services, aiming to create a more transparent and efficient market environment. With these efforts, Hong Kong continues to distinguish itself as a forward-looking jurisdiction, combining innovation with robust regulation to lead the next phase of growth in the digital asset industry.
Oliver is a lead analyst at Blockonist, specializing in blockchain scalability solutions. A graduate with a degree in computer science, he provides data-driven insights into the evolving Web3 infrastructure. Oliver’s articles are known for their clarity and technical precision, making him a trusted voice in the industry.
