April 9, 2025<\/p>\n\n\n\n
By Anjali Kochhar<\/p>\n\n\n\n
Hong Kong\u2019s Securities and Futures Commission (SFC) has released a detailed regulatory framework for crypto exchanges offering staking services, signalling its continued support for a secure and innovative digital asset ecosystem. These new rules are designed to enhance investor protection while maintaining the city\u2019s competitive edge in the growing Web3 space.<\/p>\n\n\n\n
Under the new framework, only licensed virtual asset trading platforms (VATPs) are permitted to offer staking services, and they must obtain written approval from the SFC before doing so. Importantly, the exchange must retain full control of the staked assets and cannot delegate custody or control to third-party service providers. This measure ensures maximum accountability and minimises the risk of asset mismanagement or fraud.<\/p>\n\n\n\n
To further protect users, the SFC has made it mandatory for platforms to disclose all terms, conditions, and associated risks related to staking services. Platforms must explain how the staking mechanism works, how rewards are calculated and distributed, and the risks of slashing (losses incurred due to protocol penalties). Exchanges are also required to regularly report their staking activities to the SFC, adding a layer of transparency and regulatory oversight.<\/p>\n\n\n\n
Notably, this move does not allow platforms to stake on behalf of clients through third-party services or decentralised protocols. The intention is to keep staking operations tightly regulated within the licensed platform itself, maintaining high levels of trust and reducing exposure to unregulated entities.<\/p>\n\n\n\n
Chen Wu, co-founder and CEO of SFC-licensed exchange Ex.io, welcomed the guidelines, calling them a positive step that enables compliant platforms to offer staking in a clear and responsible manner. He noted that Hong Kong is emerging as a strong Web3 hub, where innovation and investor protection go hand in hand.<\/p>\n\n\n\n
These updated guidelines reflect the SFC\u2019s broader commitment to building a thriving and regulated digital asset market in Hong Kong. While promoting innovation, the regulator is making it clear that consumer protection and transparency remain top priorities.<\/p>\n\n\n\n
About the author<\/strong><\/strong><\/p>\n\n\n\n Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.<\/p>\n","protected":false},"excerpt":{"rendered":" April 9, 2025 By Anjali Kochhar Hong Kong\u2019s Securities and Futures Commission (SFC) has released a detailed regulatory framework for crypto exchanges offering staking services, signalling its continued support for a secure and innovative digital asset ecosystem. These new rules are designed to enhance investor protection while maintaining the city\u2019s competitive edge in the growing […]<\/p>\n","protected":false},"author":4,"featured_media":7509,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-7508","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uncategorized"},"yoast_head":"\n