Hong Kong allows crypto staking for licensed platforms, ETFs as global competition heats up
Quick Take
- The Hong Kong FSC released guidance on Monday for licensed VATPs and ETFs seeking to offer staking services.
- The staking guidance is part of Hong Kong’s latest crypto roadmap.
Hong Kong's top financial regulator now allows licensed crypto platforms and exchange-traded funds to offer staking services — marking a step closer to the region's ambition of becoming a cryptocurrency hub.
In a statement released Monday, the Hong Kong Securities and Futures Commission said it provided regulatory guidance about staking for licensed "virtual asset trading platforms" (VATPs) and for crypto ETFs. "We have noted investors’ demand for staking services, and the potential for staking activities to contribute to the security of the blockchain network," the SFC said.
The SFC stipulates that VATPs must obtain the regulator's prior written approval before offering staking services, and crypto ETFs are also required to seek approval to engage in staking. Specifically, crypto firms are required to implement safeguards to prevent service-related errors, protect clients' staked crypto assets and clearly disclose associated risks.
The financial watchdog's staking guideline is part of the Hong Kong government's roadmap, announced in February, to develop the region's crypto framework. The roadmap outlines 12 initiatives, including exploring the possibility of new token listings, margin trading, derivatives, staking, borrowing and lending.
Hong Kong has opened its door to the crypto industry. In June 2023, it officially launched a crypto licensing regime for “virtual asset trading platforms,” allowing licensed exchanges to offer retail trading services. However, with the goal of becoming a crypto hub, the regulator is now seeking to accelerate crypto development, especially amid intensifying competition due to the pro-crypto stance of Donald Trump, who recently took office in the U.S.
"Broadening the suite of regulated services and products is crucial to sustaining the healthy advancement of Hong Kong’s virtual asset ecosystem," Julia Leung, chief executive officer of the SFC, said in Monday's statement. "But the broadening must be done in a regulated environment where the safety of client virtual assets continues to be front and center of the compliance framework for offering such service."
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
