Hong Kong Securities Regulator to Explore Staking Services in Regulated Ecosystem

According to Odaily, the Hong Kong Securities and Futures Commission (SFC) has outlined plans to explore the provision of staking services within a regulated ecosystem. This initiative will be supported by technological and custodial safeguards. The SFC aims to establish requirements for managing client asset custody, mitigate risks associated with staking, such as slashing and liquidity issues, and ensure transparency in staking operations. This approach is intended to allow investors to engage in core virtual asset functions while benefiting from traditional financial market returns. The SFC plans to implement a licensing system for custodians, recognizing their crucial role in safeguarding client assets. The legislative groundwork for this initiative is being led by the Hong Kong Special Administrative Region Government, with participation from regulatory bodies. The completion of this legislative preparation is targeted for the end of 2025.