Hong Kong Allows Staking Services for Crypto Platforms

The Securities and Futures Commission (SFC) of China Hong Kong has announced that it will permit licensed virtual asset trading platforms to offer staking services. This move is part of the regulator's broader strategy to establish the region as a leading crypto hub in the Asia-Pacific area.

Christina Choi, the Executive Director of the Investments Products Division at the SFC, unveiled the new framework during her keynote speech at the Hong Kong Web3 Festival 2025. Choi emphasized the transformative potential of blockchain technology, comparing it to the impact of the floppy disk on information storage before the advent of Web 1.0. She highlighted that blockchain has the capacity to revolutionize finance and other sectors.

The new regulatory framework mandates that platforms maintain custody of staked assets and implement specific safeguards. Licensed platforms must first obtain approval from the SFC to offer staking services and must control the methods by which users can withdraw their staked assets. Additionally, platforms are required to disclose several risks to users, including potential slashing penalties, the process and timeframe for unstaking, any lock-up periods, and technical vulnerabilities such as hacking risks and platform inactivity.

The SFC's roadmap, released in February, outlines 12 initiatives aimed at enhancing market access, compliance, and efficiency. These initiatives include regulating over-the-counter crypto trading and custodian services, as well as exploring opportunities for token listings, derivatives, and staking. The focus is primarily on professional investors, with considerations for adjustments to accommodate retail interaction.

China Hong Kong became the first region in Asia to launch spot ETFs for Bitcoin and Ethereum in April of the previous year, following the debut of spot Bitcoin ETFs in the U.S. in January. This move underscores the region's commitment to fostering innovation in the crypto space while ensuring regulatory compliance and market security.