SFC Hong Kong Rolls Out Transparent Guidelines to Boost Web3 Innovation
In a major move to solidify its place as a global Web3 leader, Hong Kong’s Securities and Futures Commission (SFC)has released a fresh set of crypto staking guidelines for exchanges and fund managers under its oversight.
Announced on April 7, the new rules aim to improve regulatory clarity around staking services — while promoting blockchain security, investor transparency, and responsible innovation in the digital asset space.
Key Staking Rules for Crypto Exchanges
The SFC now requires virtual asset trading platforms (VATPs) to obtain written approval before launching any staking-related services.
Here are the main takeaways:
- No third-party custody: Exchanges are prohibited from handing over custody of staked assets to external providers.
- Full transparency: Exchanges must clearly disclose all risks, fees, potential downtime, withdrawal policies, and how assets are held.
- Ongoing compliance: Platforms must provide regular reports of their staking activities to the SFC.
The goal? To ensure that crypto exchanges operate with accountability and user protection at the core of their staking offerings.
Rules Extended to Crypto Funds
The SFC has also issued parallelb guidance for fund managers dealing with digital assets.
Funds with 10% or more exposure to crypto assets must:
- Only stake public, liquid digital assets via SFC-approved platforms
- Ensure staking aligns with the fund’s stated investment strategy
- Notify investors if staking materially alters the fund’s risk profile, and in some cases, seek shareholder approval
Risk management and transparency remain key pillars for fund operators under this updated framework.
SFC Reaffirms Support for Web3 Growth
The announcement was accompanied by comments from Christina Choi, Executive Director of Investment Products at the SFC, during the Hong Kong Web3 Festival.
She emphasized that while Web3 holds tremendous potential, the industry must move forward with a balanced, fundamentals-driven approach. Choi also addressed the 70% drop in NFT trading volume over the past year as a reminder of how volatile the sector can be.
“We’re focused on building a stable foundation for Web3 — one that supports innovation but doesn’t follow hype blindly,” she stated.
Why Hong Kong Is Becoming a Web3 Hotspot
With its status as the #3 global financial center and a gateway to the Asian market, Hong Kong is emerging as a prime location for Web3 startups and crypto ventures.
Its approach combines:
- Transparent regulations
- Robust financial infrastructure
- Proactive policies to encourage blockchain growth
The SFC’s actions reflect Hong Kong’s ambition to lead in digital finance, especially as global markets search for reliable regulatory environments.
ASPIRe: Hong Kong’s Vision for the Crypto Future
The staking rules are part of a broader digital strategy known as ASPIRe, the city’s official roadmap to grow its crypto ecosystem. Spread across five strategic areas, including market access, risk management, and blockchain integration, the plan features 12 key initiatives aimed at making Hong Kong a global powerhouse for digital assets and Web3 innovation.
Final Thoughts
By introducing clear and enforceable staking regulations, Hong Kong is signaling its commitment to a secure and sustainable crypto future. These new rules not only protect investors but also lay the groundwork for long-term Web3 growth — positioning the city as a top-tier destination for blockchain innovation.
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