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Securities and futures commission (SFC) Hong Kong Officially licensed virtual asset trading platform (VATPS) is allowed Expressed Services to their customers.
Was long awaited step Announced During the Hong Kong Web 3 Festival 2025 on 7 April.
Guidance, placed in a new Published circularVATPS and SFC-authorized virtual asset funds provide detailed requirements and expectations that are looking to engage in stacking.
This strategic expansion is closely associated with Hong Kong’s “Aspire” roadmap, especially under column P, which focuses on increasing virtual asset products.
So far, such services were dating back by June 2023 under the SFC guidelines, which stopped VATPS from entering any returns-generating system associated with client assets.
Strict requirements were implemented to ensure investor safety
Under the newly issued circular, VATips should follow a detailed list of compliance measures if they want to engage in staking activities.
These include maintaining direct occupation or control of client assets at all times, banning detention through third-party service providers and implementing strong internal controls to manage operating risks.
Platforms require the comprehensive information about their stacking programs on their websites and apps, including fees, lock-up duration, unzesting processes, and details about possible risks.
Slashing is among the major risks highlighted, where assets can be punished due to verification abuse, lock-up risk, inaction, inaction of verification and blockchain bug.
Vataps should be transparent about how such risks are managed and how to handle any affiliated damage.
In particular, any stacking activities outsourced for the third party will have to undergo hard work, including the ongoing monitoring of third party infrastructure, track records and risk management systems.
The SFC-Occasional Virtual Asset Fund is also allowed assets at stake, but only through licensed VATPS and approved institutions.
To manage liquidity risk, these funds are subject to stacking cap and should receive and receive approval from SFC before attaching to any staking-related activities.
Before starting staking services, crypto firms must receive written approval before SFC. The SFC will evaluate their readiness and implement specific licensing conditions according to each platform.
These conditions are mentioned in CircularWill be applied as part of the appendix and licensing agreement.
Hong Kong Crypto indicates serious commitment to development
Update guidance is more than expanding the list of services offered by VATips; This sends a clear message that Hong Kong is doubled on its crypto ambitions.
This approach reflects a major policy change in the Hong Kong government because financial officials prepare to present a second, More detailed policy structure on virtual assets by the end of 2025,
Financial Secretary Paul Chan said Hong Kong will release an updated virtual asset framework later this year. #Hong Kong #Web 3https://t.co/ghoxxl8Qo5
– Cryptonews.com (@cryptonews) 7 April, 2025
According to the report, the objective of this upcoming policy will be to integrate web 3 technologies more deeply in traditional finance, support the real economy and strengthen the position of Hong Kong as a fintech leader.
These steps follow the successful rollout of a licensing regime for VATPS, already approved ten platforms, and the emergence of the Asia-Pacific’s largest market for Hong Kong’s virtual asset spot ETF.
Further laws, including stabechoin, over-the-counter (OTC) Crypto trading and regulatory structures for custodial services, are expected in the coming months.
As part of its web3 change, the city is also expected to enable functionalities within a licensed spot ETF. This step can attract more and more institutional partnerships and legalize Crypto finance in Hong Kong.
Eventually, this step by SFC highlights the maturity of Hong Kong’s crypto regulatory rule.
With additional reforms along the way, Hong Kong has been strongly deployed as a prominent player in the global race to define Crypto’s future.
Post SFC opens stacking services for licensed crypto companies in Hong Kong Appeared first Cryptonuse,