Hong Kong Authorities Ensure the Future with Virtual Asset Staking Regulations

Hong Kong’s Securities and Futures Commission (SFC) has released updated accounting rules for

asset (VA) trading platforms, representing a significant advancement in its ongoing effort to oversee the digital asset sector. Taking effect from August 15, 2025, these rules stress the importance of stronger asset custody procedures and the rollout of regulated staking offerings. The objective is to enhance the safety of client funds and nurture a robust digital asset environment that appeals to institutional participants in Hong Kong. These new standards are an integral component of the SFC’s ASPIRe roadmap, which seeks to boost investor confidence and align local practices with international regulatory standards.

The SFC has detailed a series of obligations for VA trading platforms to guarantee the secure management of client holdings. Licensed operators must now separate client assets from company assets, enforce comprehensive cybersecurity protocols, and carry out independent audits to ensure adherence to these rules. This approach mirrors established practices in traditional finance, aiming for uniformity in investor safeguards. The guidelines further specify which staking activities are allowed, letting investors generate returns through blockchain participation, while ensuring all regulated staking is monitored by the SFC for openness and risk minimization.

This regulatory framework builds upon the SFC’s earlier licensing requirements for VA trading platforms, which became active on June 1, 2023. Under these regulations, platforms must secure a VATP license from the SFC before operating in Hong Kong, and must meet a comprehensive list of criteria, such as Know-Your-Client (KYC) identification, anti-money laundering (AML) safeguards, and stringent risk controls. As of January 27, 2025, nine platforms had received approval, including industry leaders providing

and trading options. The SFC has also begun public consultations on licensing requirements for VA service providers and custodians, signaling its intention to broaden regulatory coverage across more market participants.

Hong Kong’s overall policy direction demonstrates its ambition to build a reliable and dynamic digital asset sector, as described in the government’s “LEAP” framework from Policy Statement 2.0, issued in June 2025. This framework prioritizes legal and regulatory efficiency, growing the range of tokenized assets, and promoting cross-industry partnerships. The move to regulate staking is seen as a way to draw in institutional players, who have previously been hesitant due to unclear oversight in the VA industry. By offering a compliant environment for staking, the SFC aims to boost market liquidity and engagement, reinforcing Hong Kong’s role as a leader in digital asset development.

The SFC’s strategic plan also underscores the significance of investor outreach and education. Through the “Relationships” aspect of the ASPIRe initiative, the commission is working to equip investors with reliable, factual knowledge to support sound financial decisions. This includes efforts to examine the influence of financial opinion leaders and to encourage responsible communication in the market. The SFC stresses that all market actors must recognize the risks tied to virtual assets, especially concerning their price swings and the potential for fraud.

Moving forward, the SFC intends to keep evolving its regulatory framework to respond to new risks and possibilities in the digital asset landscape. This involves assessing innovative custody methods and flexible asset storage models that could enable trading platforms to adopt novel, secure solutions. The commission is further evaluating whether to allow qualified professional investors to access new token offerings and derivatives linked to virtual assets, subject to robust vetting and transparency standards. These ongoing initiatives highlight the SFC’s dedication to balancing market innovation with strong investor protection, ensuring Hong Kong’s digital asset market remains both competitive and secure.