Hong Kong’s top financial regulator has released long-awaited guidelines that allow licensed crypto exchanges and funds to offer staking services, marking a significant step toward the city becoming a global digital asset hub.
Hong Kong Approves Crypto Staking for Licensed Exchanges Under New SFC Rules
Virtual Asset Trading Platforms (VATPs), Hong Kong’s term for licensed crypto exchanges and authorised virtual asset funds, can now legally offer staking services to clients under strict regulatory conditions, the Securities and Futures Commission (SFC) announced today.
Staking allows crypto holders to earn passive income by locking up their tokens to help secure blockchain networks, particularly those built on proof-of-stake (PoS) consensus mechanisms.
The SFC said in a press release that its new framework is part of the city’s broader “ASPIRe” roadmap to foster a vibrant, regulated crypto ecosystem while protecting investors.
“Expanding the suite of regulated services and products is crucial to maintaining the healthy progress of Hong Kong’s virtual asset ecosystem,” said SFC Chief Executive Julia Leung.
Basic Requirements for Licensed Exchanges
Under the new rules, crypto exchanges operating in Hong Kong must:
- Having full control over client assets used for staking.
- Prohibiting the outsourcing of staking activities to third parties.
- Providing transparent risk disclosures to users, including risks of blockchain errors, validator outage, or hacking.
- Explaining the staking process, including fees, minimum lockup periods, and contingency plans for operational disruptions.
With staking now officially permitted under a licensed framework, Hong Kong’s crypto sector is set to grow even further, offering both local and international investors new regulated ways to participate in blockchain networks and earn returns on their assets.
*This is not investment advice.
