Hong Kong Securities and Futures Commission (SFC) Allows Crypto Trading Platforms to Offer Staking Services

The Hong Kong Securities and Futures Commission (SFC) has officially announced that licensed crypto trading platforms and authorized funds can now offer staking services

The Hong Kong Securities and Futures Commission (SFC) has granted licensed crypto trading platforms and authorized funds permission to offer staking services within the Special Administrative Region (SAR), imposing strict regulatory safeguards.

The update was disclosed by Christina Choi, Executive Director of the SFC, during her speech at the Hong Kong Web3 Festival 2025.

This decision is part of Hong Kong’s broader strategy to strengthen its position as a key center for virtual assets in Asia.

Hong Kong’s Factor in Web3 Innovation

The new rules require all licensed platforms to seek SFC approval before launching staking services. They must also clearly disclose all related risks, including:

• The types of crypto assets that will be staked.

• The applicable staking rates and any relevant fees.

• The risks associated with slashing penalties, which can occur if validators fail to perform their duties.

• The procedures for handling bankruptcies or creditors’ claims in the event of a platform winding up.

These requirements are designed to protect user assets and ensure investors understand the risks involved.

Funds can also engage in staking activities, but with limits.

In addition to trading platforms, the SFC’s new guidance allows authorized virtual asset funds to stake assets as well—but only through licensed platforms or authorized financial institutions. The regulator also set limits to reduce liquidity risks, making sure that fund managers can still access enough assets to meet investor demands.

This step builds on Hong Kong’s earlier crypto developments, such as the approval of spot Bitcoin and Ethereum ETFs, which made digital asset investment more accessible to the public.

Hong Kong’s crypto endeavors continue to be a topic of interest within the industry. Earlier this year, the SFC updated its proposals for a new regulatory framework for crypto platforms operating in the SAR.

The SFC’s move reflects Hong Kong’s ongoing efforts to become a leading destination for digital asset innovation. Analysts estimate the local digital asset market could exceed $700 billion in value this year alone.

By introducing clear rules for staking, the SFC aims to balance innovation with investor protection, encouraging more responsible growth in the Web3 space.