Following its efforts to make Hong Kong a hub for crypto and virtual assets in the Asia-Pacific region, the Securities and Futures Commission ( SFC) issued guidance on Monday that will allow licensed virtual asset trading platforms to offer staking services.
The announcement was made during SFC Executive Director Christina Choi’s presentation address at the Hong Kong Web3 Festival in 2025, in which she outlined how digital assets may encourage fund development.
The SFC’s Investments Products Division’s Director, Choi, described how her son mistaken a floppy drive for a “3D-printed save box.” Although the picture may be repurposed, Choi’s remarks were intended to reflect on how quickly technology advances.
Platforms must adhere to the new framework for staking while implementing distinct safeguards, which is a process where investors lock digital assets to help blockchain networks and earn rewards.
The round states that “maintain custody or power of all mediums” for withdrawal mechanisms and that “licensed platforms must obtain SFC authorization before offering staking services.”
According to the framework’s requirements, there are also required to be disclosed the associated risks, such as “hacking risk and inactivity,” unstacking processes ( and durations ), lock-up periods, and technical flaws.
These developments follow the bank’s initiatives from earlier in February of this year, when it laid out a plan to improve market access, strengthen regulatory controls, and broaden the range of digital assets that might be offered within its authority.
Since becoming the first country in Asia to introduce digital asset place ETFs for Bitcoin and Ethereum in April of last year, Hong Kong has gained a lot of momentum in controlled electronic goods.  ,
According to a study from State Street, the modern asset market in Hong Kong, which is a part of China’s expanding ETF market, will surpass$ 700 billion in a year and surpass Japan in terms of size.
Blockchain technology has the potential to modify the rules of banking and beyond, Choi said.” Just as the floppy drive transformed how we stored knowledge long before Web 1.0 became popular.
edited by Sebastian Sinclair
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