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April 7, 2025

Hong Kong SFC Sets Staking Rules for Virtual Asset Platforms Victor | usagoldmines.com

The guidance aims to create a safer and more transparent environment for virtual asset transactions.

It also seeks to expand the range of services available in Hong Kong’s rapidly growing digital economy. This is very important news for staking rules.

SFC’s New Staking Rules Boost Security and Opportunities in Hong Kong

Staking offers a way to earn returns by securing the network. It is a process where investors lock their virtual assets to participate in blockchain protocols. The SFC recognizes the potential benefits of staking, which include bolstering blockchain security and providing investors with yield opportunities. These benefits are part of the broader effort to develop Hong Kong’s virtual asset ecosystem, as outlined in the SFC’s “ASPIRe” roadmap.

Under the new regulations, VATPs can expand their offerings by providing staking services. But, they must take several precautions to safeguard investor assets. Platforms must implement robust measures to prevent errors, protect staked assets, and disclose any risks associated with staking. This guidance ensures that investors are aware of the potential pitfalls while benefiting from a more regulated environment.

Meanwhile, the SFC has updated its guidelines for SFC-authorized VA funds engaged in staking. These funds are now required to stake their assets only through licensed VATPs and authorized institutions. To prevent liquidity risks, a cap has been placed on the amount of assets that can be staked. This cap ensures that the funds remain liquid enough to meet investor demands while pursuing staking opportunities.

SFC CEO Highlights Innovation and Asset Protection in the Virtual Asset Market

SFC CEO Julia Leung emphasized the importance of broadening the scope of regulated virtual asset services. “The expansion of regulated services and products is crucial to the healthy development of Hong Kong’s virtual asset ecosystem,” she said. “But it must be done in a way that prioritizes the safety of client assets.”

In short, the SFC’s regulatory approach aims to strike a balance between fostering innovation in the virtual asset market and ensuring that investors’ assets are protected. With these new guidelines, Hong Kong continues to establish itself as a global leader in the regulation of virtual assets, allowing the market to grow without risking the security of client holdings.

Disclaimer

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The post Hong Kong SFC Sets Staking Rules for Virtual Asset Platforms appeared first on Altcoin Buzz.

 

This articles is written by : Nermeen Nabil Khear Abdelmalak

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