Hong Kong Approves Crypto Staking for Licensed Platforms Under New Rules

Highlights:

• Hong Kong will allow licensed platforms to offer staking services under strict rules.
• Platforms must get approval before offering services and must keep full control of staked assets.
• Virtual asset funds can participate in staking through licensed platforms.

The Securities and Futures Commission in Hong Kong has published new guidance that permits licensed virtual asset trading platforms to offer staking services. This move was announced on Monday during a keynote speech by Christina Choi at the Hong Kong Web3 Festival 2025. Choi leads the Investment Products Division at the commission and spoke about the speed of technological change and how blockchain may reshape finance.

The Hong Kong SFC officially released stake-related guidelines. For licensed virtual asset trading platforms: they are allowed to provide staking services, but they must take measures to reduce risks, protect customer assets, and fully disclose stake risks.…

— Wu Blockchain (@WuBlockchain) April 7, 2025

According to the circular, platforms must receive approval before they start offering staking to clients. They are also required to maintain full control over the assets that are staked. This includes control of the withdrawal mechanisms. The platforms are not allowed to outsource staking functions to third-party providers.

Platforms must also openly inform all clients of all risks. Potential losses include slashing, time to unlock staked assets, lockup periods, and technical risk, such as validator inactivity or hacking. The new framework ensures that clients are clearly shown the staking process and fees. It also informs them of the minimum time their asset will be locked.

New Rules Aim to Grow a Safe and Transparent Crypto Market

Staking is a method that allows users to lock their digital assets in order to support blockchain networks and earn passive income. It plays a key role in proof-of-stake systems by helping to secure the network. The guidance released on Monday outlines how Hong Kong will allow staking but only under strict conditions to ensure the safety of client assets.

Julia Leung, the commission’s CEO, said service expansion must happen in an environment that prioritizes client safety. This includes requiring platforms to take responsibility for the custody and ongoing control of client assets. They must also make sure that services can continue even during disruptions or technical issues.

Virtual asset funds may participate in staking but only through licensed platforms or approved institutions. These funds are subject to strict limits in order to manage the risks tied to liquidity. The move follows earlier steps from the commission in February when it shared a plan to expand access to digital assets in the city.

Hong Kong continues to make progress in this area after becoming the first place in Asia to offer spot exchange-traded funds for Bitcoin and Ethereum in April last year. A report by financial firm State Street expects the city’s digital asset market to grow above $700 billion this year and become larger than Japan’s.

Approaches Differ Across Major Crypto Markets

The path taken by other regions is different. In 2023, Singapore banned retail investors from staking over worries about investor protection. In the U.S., staking still remains restricted through enforcement actions of the Securities and Exchange Commission. But some lawmakers are now asking the agency to relax those restrictions. Vermont and South Carolina, for instance, have dropped their lawsuits against Coinbase.