SFC Opens Staking Services to Licensed Crypto Companies in Hong Kong

The Securities and Futures Commission (SFC) of Hong Kong has officially allowed licensed virtual asset trading platforms (VATPs) to offer staking services to their clients.

The long-awaited move was announced on April 7 during the Hong Kong Web3 Festival 2025.

The guidance, laid out in a newly published circular, provides detailed requirements and expectations for VATPs and SFC-authorized virtual asset funds (VA Funds) looking to engage in staking.

This strategic expansion is closely aligned with Hong Kong’s “ASPIRe” roadmap, particularly under Pillar P, which focuses on enhancing virtual asset products.

Until now, such services were prohibited under SFC guidelines dating back to June 2023, which barred VATPs from entering any return-generating arrangements involving client assets.

The Hong Kong SFC officially released stake-related guidelines. For licensed virtual asset trading platforms: they are allowed to provide staking services, but they must take measures to reduce risks, protect customer assets, and fully disclose stake risks.…

Under the newly released circular, VATPs must adhere to a detailed list of compliance measures if they wish to engage in staking activities.

These include maintaining direct possession or control over client assets at all times, prohibiting custody via third-party service providers, and implementing robust internal controls to manage operational risks.

The platforms are also required to disclose comprehensive information about their staking programs on their websites and apps, including details about fees, lock-up periods, unstaking processes, and the potential risks involved.

Among the key risks highlighted are slashing, where assets may be penalized due to validator misbehavior, lock-up risk, hacking, inactivity of validators, and blockchain bugs.

VATPs must be transparent about how such risks are managed and how any associated losses would be handled.

Notably, any staking activities outsourced to third parties must undergo rigorous due diligence, including ongoing monitoring of the third party’s infrastructure, track record, and risk management systems.

SFC-authorized virtual asset funds are also permitted to stake assets, but only via licensed VATPs and approved institutions.

To manage liquidity risk, these funds are subject to staking caps and must consult with and receive approval from the SFC before engaging in any staking-related activities.

Before initiating staking services, crypto firms must obtain prior written approval from the SFC. The SFC will evaluate their readiness and impose specific licensing conditions tailored to each platform.

These terms are outlined in the circular‘s Appendix and will be enforced as part of the licensing agreement.

The updated guidance does more than merely expand the list of services offered by VATPs; it sends a clear message that Hong Kong is doubling down on its crypto ambitions.

This approach reflects a larger policy shift across the Hong Kong government as financial authorities prepare to introduce a second, more detailed policy framework on virtual assets by the end of 2025.

Hong Kong will release an updated virtual asset framework later this year to deepen Web3 adoption, Financial Secretary Paul Chan said. #HongKong #Web3https://t.co/ghoXxl8qo5

According to the report, this forthcoming policy will aim to integrate Web3 technologies more deeply into traditional finance, support the real economy, and strengthen Hong Kong’s position as a fintech leader.

These moves follow the successful rollout of a licensing regime for VATPs, which has already approved ten platforms, and Hong Kong’s emergence as Asia-Pacific’s largest market for virtual asset spot ETFs.

Further legislation, including regulatory frameworks for stablecoins, over-the-counter (OTC) crypto trading, and custodial services, is expected in the coming months.

As part of its Web3 transformation, the city is also expected to enable staking functionalities within licensed spot ETFs. This move could attract greater institutional involvement and further legitimize crypto finance in Hong Kong.

Ultimately, this move by the SFC highlights the maturing of Hong Kong’s crypto regulatory regime.

With additional reforms on the way, Hong Kong is strongly positioned as a key player in the global race to define the future of crypto.

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