Hong Kong’s financial watchdog has issued new rules for cryptocurrency staking services. The Securities and Futures Commission (SFC) says these measures aim to boost Web3 innovation while prioritizing investor protection.
The updated rules require crypto exchanges and authorized funds to follow a strict framework if they plan to offer staking services.
New Staking Rules Target Crypto Exchanges and Funds
On April 7, the SFC released fresh guidelines for how licensed Hong Kong crypto exchanges and funds can engage in staking—where users lock digital assets to support blockchain networks in exchange for rewards.
Now, all platforms must:
- Request written approval from the SFC before offering staking services
- Retain custody of staked assets—no third-party transfers allowed
- Clearly disclose risks, fees, and lock-up periods
- Explain how users can unstake assets
- Provide outage contingency plans
- Submit regular reports to the regulator
The same rules apply to crypto funds holding more than 10% in digital assets. These funds must only purchase tokens available to Hong Kong’s public and use SFC-authorized platforms.
Hong Kong’s Crypto Roadmap Continues to Expand
The SFC’s new move follows its broader crypto regulatory roadmap launched earlier. This roadmap included new licenses for OTC crypto trading and custody services, aiming to bring transparency and structure to Hong Kong’s digital asset ecosystem.
OTC (over-the-counter) crypto trading is mainly used by large investors for private transactions—another sign that Hong Kong is catering to both retail and institutional players.
Web3 Development at the Core of Hong Kong’s Vision
At the Hong Kong Web3 Festival, Christina Choi, Executive Director of Investment Products at the SFC, said innovation must go hand-in-hand with safety. She emphasized the importance of safeguarding investors, especially after the sharp drop in NFT trading volume, which has fallen 70% year-over-year.
As some platforms, like Bybit, exit the NFT space, Hong Kong is doubling down on smart regulation to ensure trust and long-term viability.
Choi added that the region stands at a pivotal point where traditional finance meets blockchain-powered tools. Under its ASPIRe roadmap, Hong Kong has rolled out 12 strategic action plans across five focus areas to become a leading digital asset hub.
Binance Steps Up Cybersecurity in Hong Kong
In a related development, Binance CEO met with Hong Kong police in February. The meeting focused on cybersecurity collaboration and fraud prevention, reinforcing Binance’s commitment to expanding safely in regulated markets.
