In a landmark move, Hong Kong’s Securities and Futures Commission (SFC) has issued new guidelines permitting approved funds and licensed virtual asset trading platforms to offer cryptocurrency staking services.  This program is part of the city’s overall strategy to become a regulated center for virtual assets.

These regulations signal a change in the approach Hong Kong will take towards cryptocurrencies. The SFC plans to enhance blockchain security, offer investors with regulated return opportunities, and enhance investor protection in the market for digital assets by permitting regulated businesses to offer staking services.

Regulatory Clarity Signals Web3 Commitment

The Hong Kong Securities and Futures Commission (SFC), on 7 April 2025, in a formal statement, made specific directives on Monday under which licensed virtual asset trading platforms (VATPs) would be permitted to offer staking services if they comply with rigorous operating, custody, and risk management requirements. The announcement constitutes a landmark regulation, making Hong Kong one of the first big financial hubs to legalize crypto staking under prevailing securities laws.

The SFC emphasized that licensed crypto platforms in Hong Kong must clearly explain all risks tied to staking, such as hacking, blockchain issues, or inactive validators. They also need to be upfront about fees, lock-up periods, and how operations will continue during disruptions. Limits are set to manage liquidity risks, showing the regulator’s careful but supportive stance. In the statement the SFC noted that,

“In setting out its regulatory approach, the SFC recognises the potential benefits of staking in enhancing the security of blockchain networks and allowing investors to earn yields on virtual assets within a regulated market environment. The latest guidance allows VATPs to expand product and service offerings, one of the five pillars set out in the SFC’s “ASPIRe” roadmap to develop Hong Kong’s virtual asset ecosystem.”

The CEO of  Hong Kong’s Securities and Futures Commission, Julia Leung emphasized that growing Hong Kong’s virtual asset market depends on expanding regulated crypto services. However, she also made it clear that investor protection remains the top priority, highlighting the need for strict rules and strong compliance.

According to CoinTelegraph, Hong Kong’s SFC has issued a new circular outlining strict conditions under which cryptocurrency exchanges will be allowed to offer staking services.  Platforms will have to first secure formal approval, retain full possession of the staked assets, and avoid transferring custody to third parties. They also have to clearly indicate to consumers all vital details as, for example, risks, fees, lock-in periods, terms of un-staking assets as regards how and when, and the events of occurrence during service disconnections. In addition, exchanges are expected to regularly report their staking activities to the SFC.

The new guidelines not only permit licensed cryptocurrency platforms in Hong Kong to offer staking services, but they also reflect the SFC’s ongoing initiative to develop a secure and well-regulated digital asset marketplace.  This action aids Hong Kong in becoming a Web3 development leader while safeguarding investors and ensuring market stability.

Platforms can now provide staking for proof-of-stake tokens, where users can receive incentives by freezing their cryptocurrency to assist in securing blockchain networks.  Businesses, however, need to keep customer assets separate from their own, have good cybersecurity, and accurately describe all possible risks to users.Experts believe the SFC green light on crypto staking would bring more institutional investors into the space. Now that there are clear guidelines in place, both crypto platforms and investors enjoy legal certainty to invest with greater confidence.