Hong Kong SFC Greenlights Staking Services for Licensed Crypto Platforms

Hong Kong’s Securities and Futures Commission (SFC) has issued new guidance allowing licensed crypto exchanges and virtual asset funds to offer staking services, marking a key step in its digital asset expansion strategy under the “ASPIRe” roadmap.

Staking, which enables crypto holders to earn passive income while securing Proof-of-Stake (PoS) blockchains, is now officially recognized by the SFC as both a network security mechanism and a regulated investment opportunity. In its press release, the regulator emphasized the need to grow the city’s crypto ecosystem while maintaining investor protection.

SFC CEO Julia Leung stated that expanding regulated services is essential for Hong Kong’s virtual asset growth, but it must happen within a secure framework that prioritizes client asset safety.

According to the newly released circular, Virtual Asset Trading Platforms (VATPs) — Hong Kong’s term for licensed crypto exchanges — must maintain full control over customer assets. Outsourcing staking to third parties is strictly prohibited. VATPs are also required to clearly disclose all risks, including potential threats like blockchain bugs, validator failures, and cyberattacks. Clients must be informed about fees, lock-up periods, and continuity plans during disruptions.

Additionally, authorized virtual asset funds are permitted to stake only through licensed platforms or approved institutions. Caps will be imposed to manage liquidity risks, reflecting the SFC’s balanced and cautious approach.

This move sets Hong Kong apart from Singapore, which banned retail staking in 2023, and the U.S., where the SEC has been cracking down on staking services. However, recent developments, such as Illinois dropping its lawsuit against Coinbase, suggest a shift in regulatory sentiment in some parts of the U.S.

Hong Kong's latest move signals its ambition to become a leading digital asset hub in Asia by supporting innovation within a regulated environment.