Hong Kong Financial Regulator Approves Crypto Staking for Licensed Exchanges! Here are the Details

Hong Kong's top financial regulator has published long-awaited guidelines that allow licensed crypto exchanges and funds to offer staking services, marking a significant step toward the city becoming a global digital asset hub.

Hong Kong Approves Crypto Staking for Licensed Exchanges under New SFC Regulations

The Securities and Futures Commission (SFC) announced today that Virtual Asset Trading Platforms (VATP 's) can now legally offer staking services to customers under strict regulatory conditions, which is a term used for licensed crypto exchanges in Hong Kong and authorized virtual asset funds.

Staking allows cryptocurrency holders, especially those on blockchain networks built on proof-of-stake (PoS) consensus mechanisms, to earn passive income by locking their tokens to help secure the network.

In a press release, the SFC stated that its new framework is part of the city's broader "ASPIRe" roadmap to promote a vibrant and regulated crypto ecosystem while protecting investors.

SFC Executive Director Julia Leung stated, "Expanding the regulated service and product package is crucial for maintaining the healthy development of Hong Kong's virtual asset ecosystem."

Basic Requirements for Licensed Exchanges

According to the new regulations, cryptocurrency exchanges operating in Hong Kong must do the following:

• Have full control over customer assets used for staking.
• Prohibiting third parties from conducting staking activities.
• Providing users with transparent risk disclosures, including blockchain errors, validator interruptions, or hacking risks.
• Explain the staking process, including fees, minimum lock-up periods, and contingency plans for operational disruptions.

Hong Kong's crypto sector is preparing to grow even further with officially permitted staking under a licensed framework. It offers newly regulated ways for both local and international investors to participate in blockchain networks and earn returns on their assets.