Hong Kong Securities Regulator to Allow Licensed Platforms to Offer Staking Services

Hong Kong’s Securities and Futures Commission (SFC) will greenlight trading platforms with licensed virtual asset trading platforms to offer staking services. The permission is part of the regulator’s push to position the country as a crypto hub in the Asia-Pacific region.

In the U.S., the SEC met with Jito Labs and Multicoin Capital in February to discuss integrating staking into crypto exchange-traded products.

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Choi Fung Yee, also known as Christina Choi, SFC Executive Director of the Investments Products Division, announced the framework during her keynote speech at the Hong Kong Web3 Festival 2025.

“Just as the floppy disk transformed how we stored information long before Web 1.0 took hold, blockchain technology has the potential to rewrite the rules of finance and beyond,” Choi said.

The new framework requires platforms to maintain custody of staked assets and implement specific safeguards. To offer staking, licensed platforms need to get approval from the SFC first. They also must keep control of the ways users can withdraw their staked assets.

Platforms are required to disclose several risks to users. These include potential slashing penalties, the process and timeframe for unstaking, any lock-up periods, and technical vulnerabilities such as hacking risks and platform inactivity.

The upcoming nod for staking comes as part of the SFC’s roadmap to enhance market access, compliance, and efficiency to accommodate innovations like tokenized securities and smart contracts.

The SFC released the new roadmap in February, covering 12 initiatives to improve market security, innovation, and growth, including regulating over-the-counter crypto trading and custodian services.

The SFC also plans to explore opportunities for token listings, derivatives, and staking, focusing primarily on professional investors while considering adjustments for retail interaction.

The jurisdiction became Asia’s first to launch spot ETFs for Bitcoin and Ethereum in April last year, following the debut of spot Bitcoin ETFs in the U.S. in January.

U.S. SEC in Discussion on Staking Feature

In the U.S., staking-related products were deemed securities under the leadership of former SEC Chair Gary Gensler.

The SEC previously categorized some staking programs as unregistered securities, including those from Kraken, Coinbase, Consensys, and Binance.

The SEC crackdown on Kraken’s staking program was the first major enforcement action against crypto staking services in the U.S. The company agreed to pay $30 million in penalties and disgorgement and shut down its staking program for U.S. customers to settle the case in February 2023.

However, earlier this year, Kraken announced the reopening of its crypto staking services in the US for 17 cryptocurrencies, including Solana and Ethereum. The services are now available to clients in 37 states.

The relaunch comes amid ongoing shifts in U.S. regulators’ approach to cryptocurrency following Trump’s election victory. Trump’s pro-crypto stance brings hope that the jurisdiction is becoming more crypto-friendly.

The SEC is moving away from “regulation by enforcement” and towards more proactive guidance that includes clarifying whether staking programs are covered by securities law. This approach is pro crypto.

The SEC’s Crypto Task Force, formed by Acting Chair Mark Uyeda and led by Commissioner Hester Peirce, held a meeting with representatives from Jito Labs and Multicoin Capital on February 5 to discuss incorporating staking into crypto exchange-traded products (ETPs).

A number of exchanges and fund managers have sought SEC approval to enable staking on spot Ethereum ETFs. 21Shares has proposed adding staking to the 21Shares Core Ethereum ETF, which would allow the fund to provide staking rewards to investors.

Cboe BZX Exchange has filed a proposal to allow Fidelity’s Ethereum ETF to stake its ether holdings. The exchange has also proposed staking for Franklin’s Ethereum ETF.

The NYSE has also submitted a proposal for the Bitwise Ethereum ETF to engage in staking.