Hong Kong Regulator Now Lets Regulated Firms Offer Staking Services

Hong Kong’s Securities and Futures Commission (SFC) published guidance Monday permitting licensed virtual asset trading platforms to offer staking services, following its efforts to establish the city as a hub for crypto and virtual assets in the Asia-Pacific region.

The announcement came during SFC Executive Director Christina Choi’s keynote speech at the Hong Kong Web3 Festival 2025, during which she framed how virtual assets could spur innovation in finance.

Choi, who leads the SFC’s Investments Products Division, recounted how her son mistook a floppy disk for a “3D-printed save button.” While the illustration appears to be reused, Choi’s statements were meant to reflect on “how fast technology races forward.”

The new framework for staking—a process where investors lock virtual assets to support blockchain networks and earn rewards—requires platforms to maintain custody of staked assets while implementing specific safeguards.

Licensed platforms need to receive SFC approval before offering staking services, and “maintain possession or control of all mediums” for withdrawal mechanisms, the circular reads.

Per the framework’s requirements, associated risks, including slashing penalties, unstacking processes (and durations), lock-up periods, and technical vulnerabilities due to “hacking risk and inactivity,” also need to be disclosed.

These developments follow the regulator’s initiatives from earlier in February this year, when it outlined a roadmap to enhance market access, tighten regulatory safeguards, and expand the range of virtual assets that could be offered within its jurisdiction.

Hong Kong has built significant momentum in regulated digital assets since becoming the first jurisdiction in Asia to launch virtual asset spot ETFs for Bitcoin and Ethereum in April last year. 

A study from financial services and investment firm State Street projects that Hong Kong’s digital asset market, as part of China’s growing ETF market, would exceed $700 billion within the year and overtake Japan by size.

“Just as the floppy disk transformed how we stored information long before Web 1.0 took hold, blockchain technology has the potential to rewrite the rules of finance and beyond,” Choi said.

Edited by Sebastian Sinclair