Hong Kong’s securities watchdog has issued a circular guiding licensed virtual asset trading platforms and authorized virtual asset funds in terms of staking, as the city furthers its commitment to fostering the development of Web3.
The Securities and Futures Commission noted that licensed platforms, when providing staking services, should effectively prevent errors associated with said services to manage risks to investors.
Platforms should also safeguard staked client virtual assets and properly disclose the risks such staked assets may face.
The latest guidance allows these trading platforms to expand product and service offerings, one of the five pillars in the SFC’s “ASPIRe” roadmap to develop Hong Kong’s virtual asset market.
Meanwhile, authorized virtual asset funds are required to stake virtual asset holdings only through licensed virtual asset trading platforms and authorized institutions, subject to a cap to manage liquidity risk, the SFC said.
Chief executive Julia Leung Fung-yee said broadening the suite of regulated services and products is crucial for Hong Kong’s virtual asset ecosystem, while it must be done in a regulated environment.
Concurrently, Financial Secretary Paul Chan Mo-po spoke at the Hong Kong Web3 Festival 2025 on Monday, highlighting the government’s commitment to maintaining fair competition while fostering innovation and promoting Web3 development.
STAFF REPORTER
