The Securities and Futures Commission (SFC) of Hong Kong has made a significant decision to allow licensed virtual asset trading platforms (VATPs) to provide staking services to their clients. This announcement was made during the Hong Kong Web3 Festival 2025 on April 7, marking a long-awaited development in the crypto industry.
The new guidance, detailed in a recently published circular, outlines the requirements and expectations for VATPs and SFC-authorized virtual asset funds (VA Funds) interested in engaging in staking activities. This move is in line with Hong Kong’s “ASPIRe” roadmap, specifically under Pillar P, which aims to enhance virtual asset products.
Previously, such services were prohibited under SFC guidelines dating back to June 2023, which restricted VATPs from participating in return-generating arrangements involving client assets. However, with the latest announcement, VATPs can now offer staking services with certain conditions in place to ensure investor safety.
Under the new circular, VATPs must comply with a set of strict measures, including maintaining direct control over client assets, no third-party custody, robust internal controls, and transparent disclosure of staking program details. Risks such as slashing, lock-up risk, hacking, inactivity of validators, and blockchain bugs must be clearly communicated to clients.
SFC-authorized virtual asset funds are also allowed to stake assets through licensed VATPs and approved institutions, subject to staking caps and consultation with the SFC. Prior written approval from the SFC is required before initiating staking services, with specific licensing conditions tailored to each platform.
This move signals Hong Kong’s serious commitment to crypto evolution, reflecting a broader policy shift within the government towards virtual assets. A more detailed policy framework on virtual assets is expected by the end of 2025, aiming to deepen Web3 adoption, support the real economy, and solidify Hong Kong’s position as a fintech leader.
With additional regulatory frameworks for stablecoins, OTC crypto trading, and custodial services anticipated, Hong Kong is poised to become a key player in the global crypto landscape. The integration of staking functionalities within licensed spot ETFs could attract institutional interest and further legitimize crypto finance in the region.
In conclusion, the SFC’s decision to open staking services to licensed crypto companies in Hong Kong marks a significant milestone in the maturation of the city’s crypto regulatory regime. With further reforms on the horizon, Hong Kong is well-positioned to play a crucial role in shaping the future of crypto on a global scale.