On August 15, 2025, the Hong Kong Securities and Futures Commission (SFC) announced new guidelines for licensed virtual asset trading platforms, focusing on enhanced custody standards and regulated staking.
Strengthening Custody Rules
The Hong Kong Securities and Futures Commission (SFC) has introduced new guidelines for virtual asset trading platforms, which enhance custody standards and permit regulated staking. These changes align with the ASPIRe roadmap aimed at strengthening the region's digital asset ecosystem.
Increased Institutional Participation
The regulatory changes aim to attract global trading platforms and enhance liquidity. Institutions may increase their engagement in Hong Kong due to the well-defined custody standards and staking services, despite the lack of specific asset flow figures.
The Role of Regulated Staking in Market Trust
This move builds on the SFC's efforts since December 2024 to tighten oversight, similar to actions in other regions. Experts suggest that incorporating regulated staking may bolster trust and spur innovation in Hong Kong's virtual asset market.
The new Hong Kong directives highlight the importance of client asset protection and the intention to create a secure and competitive ecosystem for virtual assets, which may positively impact institutional initiatives.
