{"id":126605,"date":"2025-04-07T10:17:46","date_gmt":"2025-04-07T10:17:46","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=126605"},"modified":"2025-04-07T10:17:46","modified_gmt":"2025-04-07T10:17:46","slug":"hong-kong-introduces-crypto-staking-rules-reaffirms-web3-commitment","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=126605","title":{"rendered":"Hong Kong introduces crypto staking rules, reaffirms Web3 commitment"},"content":{"rendered":"

Source: Cointelegraph.com NewsHong Kong\u2019s Securities and Futures Commission (SFC) has introduced new guidelines for crypto exchanges offering staking services.
\nIn an April 7 announcement, the SFC announced new guidelines for crypto exchanges offering staking services and locally authorized funds exposed to digital assets involved in staking. The announcement follows recent remarks from Christina Choi, the SFC\u2019s executive director of investment products, who said during a speech at the Hong Kong Web3 Festival:
\n\u201cThe SFC is committed to supporting Hong Kong\u2019s Web3 journey.\u201d
\nIn its announcement, the regulator said it \u201crecognizes the potential benefits of staking in enhancing the security of blockchain networks and allowing investors to earn yields.\u201d Consequently, the latest guidance allows crypto exchanges to provide staking service offerings.
\nRelated:\u00a0Hong Kong investment firm\u2019s shares surge 93% after buying just 1 Bitcoin
\nNew rules for staking services
\nThe new rules were communicated by the regulator in its latest circular sent to crypto exchanges under its jurisdiction. The SFC requires crypto exchanges to obtain written approval before offering staking services, retain control over staked virtual assets and not delegate custody to third parties.
\nCryptocurrency exchanges engaged in staking must disclose all relevant risks and details concerning fees, minimum lock-up periods, unstaking processes, outage processes and custodial arrangements to their customers. Lastly, the providers must report on their staking activities to the SFC.
\nA similar circular was sent to SFC-regulated crypto fund operators, with the new rules being relevant to funds with more than 10% of their net asset value invested directly or indirectly in digital assets. Funds can only acquire virtual assets that are also directly available to the local public and rely on SFC-authorized platforms. Leveraged exposure is prohibited.
\nFunds can engage in staking if it is consistent with the fund\u2019s objectives, while providing clear disclosure and robust controls. An investor notice and possibly shareholder approval may be required if staking implementation leads to material strategy or risk profile changes.
\nHong Kong bets on Web3
\nDuring her recent speech, SFC\u2019s Choi recognized that the Web3 space is still evolving and that \u201cits full benefits will unfold in time, likely with twists and turns.\u201d She cited the speculative industry of non-fungible tokens (NFTs) as a cautionary tale that justifies caution in the current regulatory approach:
\n\u201cTherefore, rather than chasing every new spark, we believe in a pragmatic approach \u2014 strengthening the fundamentals and fostering a supportive ecosystem where Web3 can thrive in a sustainable manner.\u201c
\nRelated: Hong Kong remains an \u2018open and vibrant market\u2019 for crypto, says financial secretary
\nThe official\u2019s comments follow recent reports that cryptocurrency exchange Bybit announced the shutdown of its NFT marketplace as the market is running out of steam. The decision follows a\u00a0similar decision by major NFT marketplace X2Y2 announced in late March.
\nThe non-fungible token market is seeing a significant downturn. Daily NFT trading volume was over $18 million 364 days ago before Bybit\u2019s announcements and stood at $5.34 million when the decision to shut down the platform was made public \u2014 a 70% fall.
\nWhen arguing why Web3 companies should choose Hong Kong as their headquarters, Choi pointed out that Hong Kong ranks third in the Global Financial Centres Index. Furthermore, local regulators have set clear guidelines for crypto industry firms, and Hong Kong provides easy access to Asian markets.
\nGlobal Financial Centres Index top 10. Source: LongFinanceIn her closing statements, Choi said, \u201cWe stand today at the crossroads where traditional finance and the digital economy are converging to drive promising outcomes for our financial markets.\u201d She added:
\n\u201cThe zero-to-one breakthrough has been made, and its future success would very much depend on how we nurture this convergence, that is, how we go from one to 100.\u201c
\nHer statements echo Hong Kong\u2019s financial technology sector, which has seen 250% growth since 2022. The SFC recently introduced a new roadmap to position the city as a global cryptocurrency hub.
\nThe \u201cASPIRe\u201d roadmap hopes to future-proof the local virtual asset ecosystem. It involves 12 initiatives spread across five broad categories, which include providing market access, optimizing compliance and frameworks and improving blockchain efficiency.
\nMagazine:\u00a0Korea to lift corporate crypto ban, beware crypto mining HDs: Asia ExpressRead More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsHong Kong\u2019s Securities and Futures Commission (SFC) has introduced new guidelines for crypto exchanges offering staking services. In an April 7 announcement, the SFC announced new guidelines for… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126605"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=126605"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126605\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=126605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=126605"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=126605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}