While many countries are still hesitant, or even completely banning staking for retail investors, Hong Kong has officially issued a new set of regulations allowing licensed crypto exchanges to provide staking services – on the condition of strict adherence to asset protection rules and risk disclosure.
This move marks a significant step forward for Hong Kong in the race to become Asia's digital financial hub, while showcasing a balanced approach that is both innovative and cautious towards the rapidly growing digital asset market.
Staking is officially licensed in Hong Kong
According to the announcement on April 7, 2025, from the Hong Kong Securities and Futures Commission (#SFC ), authorized digital asset trading platforms (VATPs) and digital asset investment funds will be allowed to provide staking services, a form that allows users to 'lock' digital assets to support the blockchain network and receive rewards.
However, to be allowed to provide staking, platforms and funds must strictly adhere to many requirements, including:
Maintain full control over customer assets – no authorization for third parties to perform staking.
Clearly disclose all risks related to staking, including:
Technical errors on the blockchain
Risk of cyber attacks
The validator node ceasing to operate
Provide transparent information about:
Transaction fees
The staking and un-staking process
Minimum lock-up period
System disruption handling plan
Moreover, authorized digital asset funds are only allowed to stake through licensed platforms or approved financial institutions and must comply with staking limits to minimize liquidity risks.
Staking – a tool for profit and network security
#staking is an essential part of blockchains using the Proof of Stake (PoS) mechanism. Not only does it help protect the network and ensure decentralization, but staking also opens up opportunities for passive income for digital asset holders without the need to sell their assets.
Hong Kong, through the ASPIRe initiative, is gradually expanding its digital asset ecosystem with the goal:
Diversifying digital financial products
Ensuring safety for investors
Increasing competitiveness with regional financial centers
According to Julia Leung, CEO of SFC:
“Expanding digital asset products and services is a key factor for the healthy development of the digital asset ecosystem in Hong Kong. However, this expansion needs to occur in a strictly regulated environment to ensure asset safety for investors.”
In contrast to Singapore and the USA
Hong Kong's new direction creates a stark contrast with two other major financial centers:
🔴 Singapore: From 2023, this country's financial regulator completely banned staking for retail investors, citing consumer protection and limiting risks from hard-to-control products.
🔴 USA: The U.S. Securities and Exchange Commission (SEC) maintains a tough stance on staking, continuously enforcing sanctions against platforms providing staking services without registration. However, this agency is facing increasing pressure from bipartisan lawmakers to relax regulations and reconsider the definition of staking.
In this context, Hong Kong has chosen an open but controlled approach, facilitating financial innovation while ensuring investor protection.
Why is this move important for crypto?
✅ Create a clear legal framework for staking platforms – a factor that is severely lacking in many other countries.
✅ Attract institutional investors and investment funds into the digital asset market in Hong Kong.
✅ Create a foundation for developing decentralized financial (DeFi) services with a 'licensed' and transparent factor – something that large organizations are always seeking.
✅ Make staking a legitimate investment tool, opening up many opportunities for passive income within a safe legal framework.
Conclusion: Hong Kong is betting on staking to lead the crypto game
While many countries remain cautious or are tightening staking services, Hong Kong is strategically and methodically stepping forward, with a clear regulatory system aimed at turning risks into competitive advantages.
With these new regulations, Hong Kong is not only facilitating the safe development of staking but is also gradually becoming a preferred destination for serious investors and blockchain projects in the Asia-Pacific region.
Note: This article is intended to provide information and should not be viewed as investment advice. The cryptocurrency market is highly volatile and risky; investors should carefully consider before participating. #anhbacong
