Hong Kong’s Securities and Futures Commission (SFC) has released updated guidelines allowing licensed crypto trading platforms to offer staking services. The agency believes the framework will promote innovation while boosting investor protection within the city’s digital asset market.
Hong Kong Approves Crypto Staking
The new framework allows investors using SFC-approved crypto platforms to earn yields on their digital assets by locking them to support blockchain network operations. However, platforms must implement custody solutions, fully control withdrawal processes, and disclose staking-related risks.
The agency claims that the stipulated measures ensure that investors can benefit from attractive yield opportunities while their assets remain secure and fully safeguarded throughout the staking process. The SFC believes the guideline will provide regulatory clarity that encourages domestic and international crypto firms to operate within Hong Kong.
Recall that Hong Kong has always yearned to be recognized as a global hub for digital assets; hence, the guidelines are part of its initiative to solidify the anticipated position. Concerning the new development, the SFC spokesperson said:
“Expanding the range of regulated crypto services is a crucial step toward building a mature digital asset ecosystem that balances innovation with rigorous investor protection.”
HK Makes Other Crypto Moves
As it has released guidelines for crypto staking, Hong Kong is also preparing to introduce stablecoin legislation alongside a new licensing framework for crypto platforms. This legislation aims to regulate stablecoins by establishing clear transparency, security, and liquidity standards, ensuring that stablecoins are regulated.
The city has recently taken other steps to become crypto-friendly. One of these initiatives is exempting hedge funds from paying taxes on crypto gains, which was designed to attract institutional investors and capital inflows into its financial markets. These moves sharply contrast mainland China’s hostile policies against crypto-related activities.
Meanwhile, Hong Kong is also considering adopting a strategic Bitcoin reserve this year, signaling a willingness to integrate crypto into the region’s treasury. Globally, other nations are also vying for crypto reserves, with the U.S. exploring options to integrate Bitcoin into their treasury management systems. El Salvador has also integrated Bitcoin into its national reserve and is steadily building it.
