Hong Kong Allows Staking Services by Licensed Crypto Exchanges

The Hong Kong Securities and Futures Commission (SFC) has issued new guidelines allowing licensed crypto asset exchanges and investment funds to offer staking services in the region.

According to information from Coinvestasi, this move is part of the SFC’s strategy to develop the digital asset ecosystem in Hong Kong through the “ASPIRe” roadmap.

The Role and Benefits of Staking in the Crypto Ecosystem

Staking is the process by which crypto asset holders lock their tokens in a blockchain network to earn passive income without having to sell their assets.

In addition to generating yields, staking also contributes to the security and integrity of Proof of Stake (PoS)-based blockchain networks.

The SFC recognizes that staking serves two main functions: strengthening blockchain network security and providing a regulated investment opportunity.

Policies and Requirements for Licensed Crypto Exchanges

In its official guidelines, the SFC mandates that Virtual Asset Trading Platforms (VATPs) or licensed exchanges must retain full control over client assets and are prohibited from outsourcing staking services to third parties.

Exchanges are also required to transparently disclose all potential risks, such as technical failures on the blockchain, hacking threats, and validator inactivity.

Additionally, platforms must clearly explain the staking process, associated fees, minimum lock-up duration, and business continuity plans in the event of disruptions.

Comparison with Regulatory Approaches in Other Countries

Hong Kong’s policy stands in contrast to other countries such as Singapore, which in 2023 banned staking services for retail investors as a consumer protection measure.

Meanwhile, the U.S. Securities and Exchange Commission (SEC) continues to restrict staking activities through legal actions, despite mounting pressure from several bipartisan senators to adopt a more open stance.

With this new policy, Hong Kong reaffirms its commitment to supporting innovation in the digital asset sector while ensuring investor protection and market integrity.