Securities Regulator in Hong Kong Permits Authorized Platforms to Facilitate Staking Operations
With the Securities and Futures Commission (SFC) in Hong Kong giving the green light, licensed virtual asset trading platforms will now be able to offer staking services. This move is part of a broader strategy to make Hong Kong a hub for crypto in the Asia-Pacific region.
In the U.S., the Securities and Exchange Commission (SEC) has held talks with Jito Labs and Multicoin Capital regarding integrating staking into crypto exchange-traded products (ETPs).
Choi Fung Yee, SFC's Executive Director of the Investments Products Division, announced the new framework during her keynote speech at the Hong Kong Web3 Festival 2025. She stated, "Blockchain technology has the potential to rewrite the rules of finance and beyond." The new framework requires platforms to maintain custody of staked assets and implement specific safeguards.
To offer staking, platforms need to get approval from the SFC first and have control over the ways users can withdraw their staked assets. They must disclose several risks, including potential slashing penalties, the process and timeframe for unstaking, any lock-up periods, and technical vulnerabilities such as hacking risks and platform inactivity.
This comes as part of the SFC's strategic plans to enhance market access, compliance, and efficiency to accommodate innovations like tokenized securities and smart contracts. The new roadmap covers 12 initiatives, including regulating over-the-counter crypto trading and custodian services, and even exploring opportunities for token listings, derivatives, and staking.
In the U.S., staking-related products were initially deemed securities under the leadership of former SEC Chair Gary Gensler. The SEC previously classified some staking programs as unregistered securities, including those from Kraken, Coinbase, Consensys, and Binance. However, there has been a recent shift in US regulators' approach to cryptocurrency, making it more crypto-friendly.
The SEC is currently moving away from "regulation by enforcement" towards more proactive guidance, including clarifying whether staking programs are covered by securities law. This approach is pro crypto, paving the way for potential developments.
Recent meetings between the SEC's crypto task force and BlackRock discussed various issues, including staking in ETFs, signaling the need for clear standards to determine the rejection or approval of crypto ETPs, which would also consider staking capabilities. Several proposals, including those from Grayscale and Cboe to introduce staking in Ethereum ETFs, have been submitted to the SEC. However, no definitive decisions have been made yet.
The shift towards a more crypto-friendly approach in the U.S. is considerable, offering potential opportunities for the integration of staking in ETPs. As such, it's an exciting time for both industry players and investors in the crypto space.
- With the SFC's approval, licensed platforms in Hong Kong can offer staking services for cryptocurrencies like Bitcoin and Ethereum, aiming to make Hong Kong a crypto hub in the Asia-Pacific region.
- In contrast, the U.S. Securities and Exchange Commission (SEC) is moving towards a more proactive approach towards crypto, which could potentially lead to the integration of staking in exchange-traded products (ETPs), including Ethereum ETFs.
- The discussions between the SEC's crypto task force and industry giants like BlackRock are focusing on clarifying the regulatory environment for staking in ETFs, which could open up new investing opportunities in the cryptocurrency technology space.
