Hong Kong's SFC Issues Staking Guidance for Crypto Exchanges and Funds

The Securities and Futures Commission (SFC) of Hong Kong has issued new regulatory guidance for licensed virtual asset trading platforms (VATPs) and SFC-authorized virtual asset funds (VA Funds) regarding the provision and engagement in staking services. Recognizing the potential benefits of staking for enhancing blockchain security and allowing investors to earn yields, the SFC’s guidance aims to expand product offerings for platforms while ensuring investor protection. The guidance outlines necessary measures for VATPs to prevent errors, safeguard staked assets, and disclose associated risks. Additionally, the revised guidance for VA Funds stipulates that staking must occur only through licensed platforms and authorized institutions, with liquidity risk management in mind. SFC CEO Julia Leung emphasized the importance of broadening regulated services while prioritizing the safety of client virtual assets within the compliance framework.