In her speech at the Web3 Festival 2025 in Hong Kong, Ms. Christina Choi – Executive Director of the Hong Kong Securities and Futures Commission (SFC) – announced an important advancement: licensed digital asset trading platforms in Hong Kong will officially be allowed to provide staking services if they meet the strict conditions set by the regulatory body.
This move further solidifies Hong Kong's pioneering position as Asia's leading digital financial hub – and a rare bright spot in the still unstable legal landscape for crypto globally.
Staking has been officially "greenlit" in Hong Kong
According to the new guidelines published by #SFC on April 7, licensed digital asset trading platforms in Hong Kong can provide staking services – allowing users to lock their assets to support blockchain activities and earn rewards.
However, the accompanying conditions are:
Must be approved by the SFC before offering staking services.
Platforms must hold all staking assets and control the withdrawal mechanisms.
Must fully disclose all related risks, including:
The "slashing" penalty (loss of assets due to rule violations)
Asset lock-up period
The process and time for asset withdrawal (unstaking)
Technical risks such as cyberattacks or system interruptions
The issuance of such a specific legal framework demonstrates the SFC's efforts to balance technological innovation with investor protection – something many other countries are still struggling to navigate.
From floppy disks to blockchain: The story of innovation
In a metaphorical introduction, Ms. Choi recounted how her son once thought a floppy disk was... a "3D save button" – vividly illustrating the rapid pace of technological change.
"Just as floppy disks once changed the way we stored data from the Web 1.0 era, blockchain today has the potential to rewrite the rules of the entire financial industry – and beyond."
Ms. Choi's message is clear: if we don't keep pace with innovation, the market will be left behind.
Hong Kong – the legal bright spot for crypto in Asia
The announcement about staking did not come as a surprise. Since the beginning of this year, the SFC has continuously promoted initiatives to upgrade the legal framework for digital assets:
February 2025: SFC announces a roadmap for reforming the digital asset market, which includes:
Expand the list of tradable assets
Enhance investor protection
Facilitate the development of digital asset derivatives and ETFs
Previously, in April 2024, Hong Kong was the first region in Asia to launch spot ETFs for Bitcoin and Ethereum, a major milestone that helped attract institutional capital.
A study from #StateStreet – one of the world's leading financial service companies – predicts that the digital asset market in Hong Kong could exceed $700 billion this year, potentially surpassing Japan to become the largest ETF market in the region.
Why is staking so important?
Staking is an essential part of the blockchain ecosystem – especially for networks using the Proof-of-Stake (PoS) consensus mechanism such as $ETH , $SOL , $ADA
Being allowed to stake will:
Increase engagement between users and the blockchain, allowing them to "earn" by contributing to network security
Create additional stable revenue streams for exchanges and trading platforms
Attract institutional investors, thanks to a clear and legally managed profit model
With a clear legal framework from the SFC, staking in Hong Kong will have many distinguishing features:
✅ Transparency about risks
✅ Ensuring users' assets are securely controlled
✅ Reducing fraud or subpar staking platforms
In summary: Blockchain has "gone mainstream" in Hong Kong
The message that the SFC and Ms. Christina Choi bring is not just a legal update – but a statement that blockchain, staking, and digital assets are entering a phase of formalization in Hong Kong.
From the ancient floppy disk to modern distributed ledger technology, Hong Kong is proving that: the right policies can turn risks into opportunities, and blockchain is not just a technological wave – but the future of global finance.
Note: This article aims to provide information and should not be considered investment advice. The cryptocurrency market is highly volatile and carries significant risks; investors should carefully consider before participating.