The Securities and Futures Commission (SFC) of Hong Kong has issued a new guideline for staking. The recipients are for the virtual asset trading platforms (VATP) and the authorized virtual asset funds (VA Funds).
Hong Kong introduces the new guideline for staking for authorized platforms
The Securities and Futures Commission (SFC) announced that it has issued a new guideline for the staking service, dedicated to authorized platforms.
Specifically, the new regulatory guide is aimed at virtual asset trading platforms (VATP) and virtual asset funds (VA Funds), authorized by the SFC.
In practice, the SFC indicates the measures that VATPs must adopt to best manage the risks for investors. It involves effectively preventing errors associated with services, safeguarding clients’ virtual assets, and ensuring adequate disclosure of the risks to which such assets may be subject.
In this way, the SFC fully recognizes the potential advantages of staking in improving the security of blockchain networks. Not only that, the entity allows investors to obtain returns on virtual assets, provided it is in a regulated market environment.
As for i Fondi VA, invece, staking of virtual assets can only be carried out through VATP and authorized institutions, with a maximum limit to manage liquidity risk.
Hong Kong: crypto staking becomes regulated
Thanks to this new guideline, the staking of virtual assets (crypto and token) in Hong Kong becomes regulated.
In this regard, Julia Leung, Chief Executive Officer of the SFC, said:
“The expansion of the range of regulated services and products is essential to support a healthy development of Hong Kong’s virtual asset ecosystem. However, the expansion must occur in a regulated environment where the security of customers’ virtual assets remains at the center of the compliance framework for offering such services”.
Recently, the Hong Kong Fintech Ecosystem report by InvestHK issued its forecast that the region’s fintech market is set to reach 606 billion dollars by 2032.
This is an average annual growth rate of 28.5% from 2024 to 2032, exactly in 8 years.
In this sense, Hong Kong continues to establish itself as one of the main fintech hubs globally, with its growth driven by blockchain, digital resources, AI, and a regulatory framework favorable to Web3.
Stablecoin, Bitcoin and Ethereum
Among the latest crypto news concerning Hong Kong, in February there was talk of the new issuance of the stablecoin collateralized in HKD.
In practice, the joint venture that includes Standard Chartered Bank, Animoca Brands, and HKT, would have applied to the Hong Kong Monetary Authority (HKMA) for the license to issue its new stablecoin in HKD.
Should such a license be granted, the new stablecoin would be the first of its kind in the world.
Another piece of news that brings Hong Kong closer to the crypto sector is the one that saw the New Capital Investment Entrant Scheme, the program of visa for wealthy investors, accept Bitcoin (BTC) and Ethereum (ETH) as proof of the wealth required for eligibility.