Hong Kong’s SFC Introduces New Guidance for Crypto Staking Services

Hong Kong's Securities and Futures Commission (SFC) has issued new guidance permitting licensed crypto exchanges and funds to offer staking services. Key points include:

Staking allows crypto holders to earn passive income while securing Proof of Stake networks.
The SFC recognizes staking's role in enhancing blockchain security and generating regulated yields for investors.
Virtual Asset Trading Platforms (VATPs) must maintain control over client assets, prohibiting third-party outsourcing for staking.
Platforms must disclose risks, processes, fees, minimum lock-up durations, and business continuity plans.
Authorized virtual asset funds can stake only through licensed platforms, with a cap on liquidity risks.
This regulatory framework contrasts with Singapore's ban on retail staking implemented in 2023.
The U.S. SEC continues to enforce actions against staking but faces calls from senators for regulatory easing.
Several U.S. states have dismissed lawsuits against Coinbase related to its staking program.