Hong Kong’s Securities and Futures Commission announced new guidelines for licensed virtual asset trading platforms on August 15, 2025, focusing on enhanced custody standards and regulated staking services.
These guidelines signify a strategic move to strengthen client asset protection and foster a sustainable digital asset ecosystem in Hong Kong, potentially increasing institutional crypto participation.
Hong Kong Enhances Virtual Asset Custody Rules
The Securities and Futures Commission (SFC) in Hong Kong has introduced new guidelines for virtual asset trading platforms. These regulations enhance custody standards and permit regulated staking, aligning with the ASPIRe roadmap to strengthen the region’s digital asset ecosystem.
The guidelines involve the SFC, Hong Kong Monetary Authority, and all licensed virtual asset platforms. Focus areas include custody practices and regulated staking services, aiming to foster a trusted digital asset environment in Hong Kong.
Institutions Poised for Greater Hong Kong Engagement
Institutions may increase participation in Hong Kong due to the dual focus on custody standards and staking services. These changes aim to attract global trading platforms and enhance liquidity, despite no explicit asset flow figures being disclosed.
The financial and regulatory implications involve expanding compliant staking services on licensed platforms. Historical trends indicate these adjustments could positively influence institutional involvement and on-chain staking activities for assets like ETH and other PoS tokens.
Regulated Staking Set to Transform HK Market Trust
This move builds on the SFC’s efforts since December 2024 to tighten oversight, similar to other regions. Comparable steps by the Monetary Authority of Singapore are reflected in the emphasis on staking and custody integration.
Experts suggest that incorporating regulated staking might improve trust and spur innovation in Hong Kong’s virtual asset landscape, bolstered by historical regulatory trends focusing on custody and asset protection. Dr. Eric Yip, Executive Director of Intermediaries, SFC, stated, “In order for Hong Kong to foster a competitive, sustainable and trusted digital asset ecosystem, client asset protection must always remain a top priority for all licensed VATPs, which can leverage the SFC’s practical guide to step up their custody practices especially amid heightened risks globally.”
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