Hong Kong Opens Up to Crypto Staking, Aiming to Become a Major Digital Asset Hub
The Securities and Futures Commission of Hong Kong (SFC) now allows licensed crypto trading platforms and exchange-traded funds (ETFs) to offer staking services. This announcement is part of a broader strategy to enhance the region’s attractiveness as a stronghold for digital assets.
A Regulated Framework for Secure Development
The regulatory framework announced by the SFC on Monday requires virtual asset trading platforms (VATPs) to obtain prior written authorization before offering staking services. ETFs interested in engaging in this activity must also obtain regulatory approval. The declared objective is to meet the growing demand from investors while ensuring rigorous asset protection and complete transparency on associated risks.
The requirements include implementing security systems to prevent service errors, protecting cryptocurrencies staked by clients, and ensuring clear communication about the implications of these services. This regulatory advancement is part of a broader roadmap unveiled by the government in February, which includes twelve key initiatives such as the examination of new token listings, margin trading, derivatives, lending, and borrowing.
An Offensive Strategy in a Global Competitive Context
Since the establishment of its licensing regime in June 2023, Hong Kong has been signaling openness towards the crypto industry. This momentum has intensified with the rise of Donald Trump, a staunch supporter of crypto, reigniting competition among major global financial centers. In this context, the region aims to go further and faster.
Julia Leung, the SFC’s CEO, emphasizes the importance of this regulated diversification:
The expansion of regulated services and products is essential for the healthy development of Hong Kong’s virtual asset ecosystem. However, this expansion must occur within a strict framework where the security of client assets remains the top priority.
An Assertive Positioning as a Global Crypto Hub
The decision to allow staking is not merely a technical adjustment; it represents a new milestone in Hong Kong’s assertive ambition to become a global crypto hub. By enabling ETFs to directly participate in securing blockchains through staking, the regulator sends a clear message: the city is no longer just regulating, it wants to encourage innovation under strict conditions.
In a context where Europe is tightening controls and the United States is searching for their path between innovation and regulatory caution, Hong Kong draws a clear line: to offer a secure, attractive, and competitive environment for web3 actors to experiment.
