The post Hong Kong SFC Releases Regulatory Framework for Crypto Staking Services appeared on BitcoinEthereumNews.com.

TLDR Hong Kong’s SFC now allows licensed crypto platforms to offer staking services Platforms must maintain control of client assets and fully disclose all risks Prior written approval from the SFC is required before offering staking services This move contrasts with Singapore’s retail staking ban and the SEC’s restrictive approach The change aligns with Hong Kong’s “ASPIRe” roadmap to grow its digital asset ecosystem Hong Kong’s Securities and Futures Commission (SFC) has officially permitted licensed virtual asset trading platforms (VATPs) and authorized funds to offer crypto staking services. This regulatory move, announced on April 7, 2025, marks a clear effort by Hong Kong to position itself as a crypto-friendly financial hub in Asia. Under the new guidelines, crypto firms holding VATP licenses can now provide staking services to customers. Staking allows crypto holders to earn passive income by “locking up” their digital assets for a period of time. Julia Leung, the SFC’s Chief Executive Officer, emphasized the importance of this development. “Broadening the suite of regulated services and products is crucial to sustain the healthy advancement of Hong Kong’s virtual asset ecosystem,” she said. The regulator has implemented specific safeguards to protect investors. Licensed platforms must maintain complete control of clients’ assets throughout the staking process. Outsourcing staking to third parties is explicitly prohibited. This requirement aims to prevent scenarios where client funds might be at risk due to external provider failures. Investor Protection Measures Transparency is central to the new framework. Platforms offering staking services must clearly disclose all associated risks to customers. These risks include potential blockchain errors, hacking vulnerabilities, and validator inactivity issues. VATPs must also inform clients about the staking process, fee structures, and minimum lock-up periods. Business continuity plans during disruptions must be clearly communicated. This ensures customers understand what happens to their assets if…

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Filed under: News - @ April 7, 2025 4:27 pm