Hong Kong Expands Guidelines for Virtual Asset Staking Services

According to PANews, the Hong Kong Securities and Futures Commission (SFC) has released new guidelines for licensed virtual asset trading platforms and recognized virtual asset funds regarding staking services. The guidelines permit these platforms to offer staking services, including for virtual asset spot ETFs. Staking allows investors to lock their virtual assets to support blockchain networks and earn returns. However, due to associated risks, the SFC will implement additional safeguards, such as requiring licensed platforms to custody staked virtual assets and setting limits on the proportion of virtual asset spot ETFs that can be staked to manage liquidity risks. Cai Fengyi, Executive Director of the Investment Products Division at the Hong Kong SFC, stated that the commission is expanding the range of eligible virtual asset targets. Initially, virtual asset spot ETFs focused primarily on Bitcoin and Ether. Now, more virtual assets meet the criteria for retail trading on licensed platforms, paving the way for diversification of ETF products, such as single ETFs tracking a basket of virtual assets.