Hong Kong has allowed staking for licensed exchanges and cryptocurrency ETFs

Such services require prior authorization

07.04.2025 - 10:30

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2 min

What’s new? Hong Kong’s top financial regulator has allowed licensed crypto platforms and exchange-traded funds (ETFs) to offer staking services as part of its strategy to turn the special administrative region of the People’s Republic of China into a regional crypto hub.

SFC statement

What else is known? For instance, the Securities and Futures Commission (SFC) has provided regulatory guidance on staking for virtual asset trading platforms (VATPs) and crypto ETFs. “We have noted investors’ demand for staking services, and the potential for staking activities to contribute to the security of the blockchain network,” the SFC said.

Cryptocurrency companies must obtain prior written approval from the regulator before offering staking services, and implement security measures to prevent errors and protect customer assets by disclosing the risks associated with the service.

The guideline is part of the government’s roadmap for developing the region’s crypto framework, unveiled in February. It outlines 12 initiatives, including exploring the listing of new tokens, margin trading, derivatives, staking, borrowing, and lending.

“Broadening the suite of regulated services and products is crucial to sustaining the healthy advancement of Hong Kong’s virtual asset ecosystem. But the broadening must be done in a regulated environment where the safety of client virtual assets continues to be front and center of the compliance framework for offering such service,” said SFC CEO Julia Leung.

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In June 2023, Hong Kong officially launched a licensing regime for retail crypto exchanges. The SFC now aims to accelerate the development of the crypto sector amid increased competition from the United States.

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