Hong Kong’s Securities and Futures Commission (SFC) has officially authorized licensed virtual asset trading platforms to offer staking services. This move aims to reinforce the city’s status as a leading hub for digital assets in the Asia-Pacific region.
The announcement was made on Monday, 7 April 2025, in tandem with a keynote speech by SFC Executive Director Christina Choi at the 2025 Hong Kong Web3 Festival.
Choi, who oversees the regulator’s Investment Products Division, highlighted the rapid pace of technological advancement. Choi talked about how blockchain has the potential to reshape finance, drawing a humorous analogy to her son mistaking a floppy disk for a 3D-printed save icon.
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Hong Kong Approves Regulated Crypto Staking Under New Oversight Rules
Staking, where users lock their crypto holdings to support blockchain operations in exchange for rewards, will now be allowed under strict regulatory oversight.
The SFC’s updated guidelines require licensed platforms to retain custody of staked assets and to seek prior approval before offering staking to users. Platforms must also maintain control over all mechanisms related to withdrawals.
The SFC’s circular emphasizes the need for transparency regarding staking-related risks. These include slashing penalties, unstacking procedures, lock-up periods, and possible vulnerabilities such as hacking or network inactivity.
This regulatory update follows a broader roadmap introduced by the SFC in February, which aims to expand investor access to digital assets, strengthen oversight, and widen the scope of tradable virtual assets.
The Hong Kong government said that stablecoin legislation will be passed soon, and relevant compliance licenses will be established for over-the-counter transactions and custody businesses, licensed spot ETFs will be allowed to provide stake services, and new legislative…
— Wu Blockchain (@WuBlockchain) April 7, 2025
Hong Kong has been a pioneer in regulated digital finance in Asia. In April 2024, it became the first jurisdiction in the region to approve spot Bitcoin and Ethereum ETFs.
A recent study by financial giant State Street projects that Hong Kong’s digital asset market could exceed $700 billion this year, potentially overtaking Japan as Asia’s largest ETF market.
“Just as the floppy disk transformed how we stored information, blockchain has the potential to rewrite the rules of finance,” Choi remarked.
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Hong Kong Grants Crypto Licenses To PantherTrade And YAX, Raising Total To Nine
Earlier this year, the SFC issued operational licenses to crypto exchanges PantherTrade and YAX. This brings the total number of licensed virtual asset trading platforms (VATPs) to nine since the regulatory framework launched in mid-2024.
The SFC’s initial goal was to approve 11 platforms by the end of 2024. However, delays pushed the target into early 2025. Six additional applicants, including WhaleFin Markets and Flying Hippo Technologies, remain under review.
The licensing regime aims to enforce strict compliance standards around investor protection, cybersecurity, and operational integrity, as Hong Kong seeks to compete with faster-moving jurisdictions like Singapore.
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Key Takeaways
- Hong Kong’s SFC now allows licensed crypto platforms to offer staking under strict regulatory guidelines.
- Platforms must seek prior approval and clearly disclose risks such as slashing, lock-up periods, and security vulnerabilities.
- The move is part of Hong Kong’s broader push to lead Asia’s digital asset sector and expand its $700B crypto market.
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