Hong Kong’s financial watchdog has introduced stricter regulatory measures targeting crypto staking services and trading platforms, marking a significant shift in its oversight of the digital asset market.
The Securities and Futures Commission (SFC) has confirmed that licensed platforms can now offer staking, but only under strict conditions focused on protecting investors and maintaining market stability.
The regulations instruct crypto trading platforms to develop systems that safeguard staked assets from operational risks. Every system implements measures to maintain service continuity with clear risk communication and client asset separation policies.
The purpose is to protect investors from the financial damage that occurs when services fail unexpectedly or contractual obligations remain unclear.
The SFC issued a refreshed direction that governs virtual asset (VA) funds that acquire their authorization. Authorized virtual asset funds can stake digital assets only when they operate through licensed platforms that secure their status as under-recognized financial institutions.
Each authorized fund can stake only a specific maximum amount of assets. A stake limit exists to protect fund managers while controlling exposure risk and preventing excessive investments in staking assets.
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The new framework is essential to Hong Kong’s initiative to develop itself as a secure and leading digital asset hub. The SFC’s ASPIRe strategy corresponds with this framework by integrating Access, Safeguards, Products, Infrastructure, and Relationships.
This initiative targets responsible market expansion by protecting investors and developing the virtual asset market.
SFC Moves to Strengthen Market Trust and Operational Oversight
Through this strategy, the SFC announced that it would establish licensing systems for over-the-counter virtual asset trading operations and custody services. The regulations emerged in February 2025 to enhance sector-wide compliance standards while assuring investors about digital asset management practices.
According to SFC CEO Julia Leung, all regulatory policies should have investor protection as their core basis, even though expanding regulated crypto services remains essential. She explained that establishing a safe, transparent market would enable Hong Kong to sustain its position as a leading region for digital finance.
Through its recent rule legislation, Hong Kong pursues the establishment of a structured, safe crypto operational environment. The SFC system prioritizes creating market growth opportunities while ensuring robust protection standards for investors.
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