Hong Kong Regulators Secure the Future with Virtual Asset Staking Rules

Hong Kong’s Securities and Futures Commission (SFC) has unveiled new accounting guidelines for virtual asset (VA) trading platforms, marking a pivotal step in its broader strategy to regulate the digital asset market. The guidelines, effective August 15, 2025, emphasize enhanced custody standards and the introduction of regulated staking services. These measures aim to bolster client asset protection and foster a sustainable, institutional-friendly digital asset ecosystem in the region. The guidelines are part of the SFC’s ASPIRe roadmap, designed to reinforce investor trust while aligning Hong Kong with global regulatory trends.

The SFC has outlined specific requirements for VA trading platforms to ensure the secure custody of client assets. Licensed platforms are now mandated to segregate client assets from their own, implement robust cybersecurity measures, and conduct independent audits to confirm compliance. These steps align with traditional financial industry standards, ensuring a consistent approach to investor protection. The guidelines also clarify the permissible scope of staking services, which allow investors to earn yield on their digital assets by participating in blockchain validation processes. Regulated staking services are subject to oversight by the SFC, ensuring transparency and minimizing risks of misuse or mismanagement.

The regulatory framework builds on the SFC’s licensing system for VA trading platforms, which came into effect on June 1, 2023. Under this system, platforms must obtain a VATP license from the SFC to operate in Hong Kong, adhering to a comprehensive set of requirements, including Know-Your-Client (KYC) protocols, anti-money laundering (AML) measures, and risk management standards. As of January 27, 2025, nine platforms had been granted licenses, including major players offering Bitcoin and Ethereum trading services. The SFC has also initiated public consultations on the licensing regimes for VA dealing service providers and custodians, indicating its intent to expand the scope of regulation to cover a broader segment of the market.

Hong Kong’s policy approach reflects a broader vision of establishing a trusted and innovative digital asset ecosystem, as outlined in the government’s “LEAP” framework introduced in Policy Statement 2.0 in June 2025. The framework emphasizes legal and regulatory streamlining, the expansion of tokenized products, and cross-sectoral collaboration. The introduction of regulated staking services is expected to attract institutional investors, who have historically been cautious due to the lack of clear regulatory oversight in the VA space. By providing a compliant structure for staking, the SFC aims to increase liquidity and participation, further solidifying Hong Kong’s position as a regional hub for digital asset innovation.

The SFC’s roadmap also highlights the importance of investor education and engagement. Through the “Relationships” pillar of the ASPIRe strategy, the commission is focusing on empowering investors with accurate, fact-based information to make informed decisions. This includes initiatives to address the role of financial influencers in shaping investor perceptions and to promote responsible communication practices. The SFC has also emphasized the need for market participants to understand the risks associated with virtual assets, particularly the high volatility and potential for fraud.

Looking ahead, the SFC plans to continue refining its regulatory approach to address emerging risks and opportunities in the digital asset market. This includes exploring dynamic custody technologies and storage ratios, which may allow platforms to adopt more flexible and innovative solutions while maintaining asset security. The commission is also reviewing the possibility of allowing professional investors to access new token listings and virtual asset derivatives, subject to rigorous due diligence and disclosure requirements. These developments underscore the SFC’s commitment to balancing innovation with investor protection, ensuring Hong Kong remains a competitive and resilient digital asset market.