Ethena (ena) 
Hong Kong financial authorities have officially approved crypto firms to provide staking services for customers, subject to strict guidelines designed to mitigate risks and ensure user protection.
New Guidelines for Crypto Staking Services
In a notice published by the Securities and Futures Commission (SFC) on April 7, virtual asset trading platforms (VATPs) holding the necessary licenses can now offer staking services. However, these firms must adhere to regulatory standards, which include fully disclosing the potential risks associated with staking virtual assets to their customers.
What Is Crypto Staking?
Staking is a process that allows users to earn yield on their cryptocurrency holdings. This involves “locking up” crypto assets for a specified period, during which interest accumulates. Staking typically leverages the proof-of-stake consensus mechanism, enabling platforms to generate returns and distribute them to investors.
Approval Process and Compliance Requirements
Before offering staking services in Hong Kong, firms must obtain formal approval from the SFC. This prior written approval outlines specific requirements companies must fulfill to ensure compliance. One key requirement is that platforms must only collaborate with licensed VATPs and authorized institutions for staking activities.
Updates to the Regulatory Framework
The SFC announced updates to its circular framework on virtual asset funds to accommodate staking. These adjustments aim to support the growth of staking services while maintaining regulatory oversight to protect investors.
“Expanding virtual asset guidelines to include staking products is crucial for the growth of Hong Kong’s digital asset ecosystem, but this expansion must occur within a regulated environment where client safety remains a top priority,” said Julia Leung, CEO of the SFC.
Hong Kong’s Push for Crypto Industry Growth
Hong Kong regulators have intensified efforts to foster a thriving crypto industry. Despite criticisms about the region’s slow licensing process compared to other Asian markets like Singapore, Hong Kong remains committed to enhancing its digital asset framework.
During the Hong Kong Web3 Festival 2025, the government announced plans to introduce stablecoin legislation, licenses for over-the-counter transactions, and custody businesses. Additionally, licensed spot ETFs may soon be permitted to offer staking services as part of the region’s broader strategy to bolster its cryptocurrency sector.
These developments underscore Hong Kong’s determination to position itself as a competitive hub for cryptocurrency innovation while maintaining stringent oversight to balance growth with investor protection.
