Hong Kong’s SFC Introduces New Rules for Cryptocurrency Staking Services
The Hong Kong Securities and Futures Commission (SFC) has implemented new regulations for cryptocurrency staking services to support Web3 development while ensuring investor protection.
Key Points of the New Staking Regulations
- Exchanges must obtain written approval from the SFC before offering staking services.
- Exchanges cannot transfer custody of staked assets to third parties; they must retain full control.
- Platforms must disclose risks, fees, lock-up periods, and unstaking processes.
- Regular reporting on staking activities is required for compliance.
- Crypto funds holding over 10% in digital currencies must adhere to the same rules.
- Funds can only acquire virtual assets available to the public in Hong Kong and through SFC-authorized platforms.
These guidelines are part of a broader regulatory roadmap, including licenses for over-the-counter (OTC) trading and custody services aimed at protecting investors and fostering innovation.
Hong Kong's Commitment to Web3
Christina Choi from the SFC stressed the importance of balancing innovation with investor safety, citing a 70% drop in daily NFT trading volumes as a call for regulation. The city aims to merge traditional finance with digital tools through its ASPIRe roadmap, which outlines 12 action plans across five categories.
Additionally, Binance's CEO met with local police to enhance cybersecurity efforts amid ongoing fraud prevention initiatives.