Hong Kong Unveils New Crypto Staking Policies, Strengthens Web3 Push

Coinspeaker
Hong Kong Unveils New Crypto Staking Policies, Strengthens Web3 Push

Hong Kong’s financial regulator has announced new rules guiding cryptocurrency staking service. The Securities and Futures Commission (SFC) says the new rules are part of its broader plan to support Web3 development while protecting investors.

SFC Introduces Strict Requirements for Staking Services

On April 7, the SFC published new guidelines governing how Hong Kong crypto exchanges and authorized funds offer staking services. This move follows a growing interest in Proof of Stake (PoS) ventures, where users lock their digital assets to help secure blockchain networks and, in return, earn rewards.

Crypto exchanges operating in Hong Kong must now seek written approval from the SFC before offering any form of staking. The SFC also clarified that these exchanges must not hand over custody of staked assets to third parties. Instead, they are required to maintain full control of the assets themselves.

The Hong Kong SFC noted that any platform offering staking services must now clearly disclose the risks involved. Platforms must also disclose all fees attached, the lock-up period, and how users can unstake their assets. Platforms must also include a plan to handle outages. There must also be regular reporting to the regulator on staking activities.

The circular was not limited to exchanges. The SFC also issued the same set of instructions to crypto fund operators. Any fund that holds more than 10% of its total assets in digital currencies must now follow these rules if it is involved in staking.

These funds must only buy virtual assets available to the Hong Kong public and use SFC-authorized platforms.

In an earlier update, the SFC unveiled a new crypto regulatory roadmap. Under this roadmap, the regulator introduced licenses for over-the-counter (OTC) crypto trading and custody services. OTC trading enables large investors to buy and sell cryptocurrencies in private transactions.

Web3 Remains at the Heart of Hong Kong’s Plans

The new rules of engagement come as Hong Kong is positioning itself as a leading player in Web3. Speaking of the above, Christina Choi, Executive Director of Investment Products at the SFC, said the regulator is committed to building a strong and safe ecosystem for Web3 firms.

She spoke during the Hong Kong Web3 Festival, where she emphasized that innovation should not come at the expense of investor protection. Choi pointed to the rise and recent decline of the NFT market as a reason for the need for regulation.

She noted that daily NFT trading volumes have dropped by 70% compared to last year, prompting some platforms, like Bybit, to move towards delisting their NFT marketplaces.

Even with these changes, Choi remains positive. She said Hong Kong stands at a turning point where traditional finance is merging with digital tools. Through its ASPIRe roadmap, which includes 12 action plans across five categories, the city hopes to become a global hub for digital assets while ensuring long-term growth and public trust.

Meanwhile, in line with recent engagement with the industry, Binance’s CEO met with Hong Kong police in February. This meeting sought to strengthen cybersecurity collaboration as the exchange continues to expand its efforts in fraud prevention.

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Hong Kong Unveils New Crypto Staking Policies, Strengthens Web3 Push