The Hong Kong Securities and Futures Commission has issued regulatory guidance for licensed virtual asset trading platforms (VATPs) on offering staking services and revised its requirements for SFC-authorised funds with exposure to virtual assets (VA Funds) that engage in staking. The approach treats staking as an allowable activity within Hong Kong’s regulated virtual asset market, but only subject to specific risk controls and regulatory approvals. For VATPs, the circular sets expectations on operational safeguards, custody protection and disclosures, including measures to prevent errors associated with staking, safeguard staked client virtual assets and clearly disclose the risks to which staked assets may be subject. Platforms must obtain the SFC’s prior written approval before providing staking services, with specific conditions to be imposed on the VATP’s licence. For VA Funds, staking is permitted only via licensed VATPs and authorised institutions and is subject to a cap intended to manage liquidity risk; prior consultation with and approval of the SFC are also required before engaging in staking or other virtual asset-related activities.

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