Hong Kong’s Securities and Futures Commission (SFC) has implemented new guidelines to tighten oversight in the crypto space. These guidelines apply to licensed virtual asset trading platforms and SFC-authorized funds involved in staking. The SFC’s goal with these rules is to make crypto staking safer and to boost investor protection.
The new rules highlight the benefits of staking, such as enhancing blockchain security and helping investors earn yields in a regulated environment. By allowing licensed crypto platforms to offer more services, the SFC aims to support the growth of Hong Kong’s virtual asset market under its “ASPIRe” plan.
The SFC has laid out clear rules for licensed crypto platforms offering staking. These rules require platforms to safeguard staked assets, prevent service errors, and be transparent about the associated risks. This is a significant step towards safer staking in Hong Kong.
In addition, the SFC has revised its circular on SFC-authorized VA Funds, allowing them to stake assets but only through licensed platforms or approved institutions. To manage risk, a cap has been set on how much they can stake, which helps with liquidity management and investor protection.
SFC CEO Julia Leung believes that expanding the range of regulated crypto services is crucial for the growth of Hong Kong’s virtual asset space. However, she emphasizes that the top priority should always be protecting investors’ assets through strong regulation and compliance.
Hong Kong is actively working to position itself as a leading digital asset hub. The SFC has introduced the ASPIRe framework, which focuses on Access, Safeguards, Products, Infrastructure, and Relationships. This framework aims to streamline market access and strengthen investor protections.
In February 2025, the SFC announced plans to establish new licensing regimes for over-the-counter virtual asset trading and custody services. These plans are intended to enhance market efficiency and investor safeguards.
Note: Investments carry market risks. Please invest carefully. We do not accept responsibility for any financial losses.
