The Securities and Futures Commission (SFC) issued two circulars on 7 April 2025 setting out the criteria to be met by licensed virtual asset trading platforms (VATPs) wanting to offer virtual asset staking services to their clients and the requirements for SFC-authorised funds wanting to stake virtual assets. In both cases, the SFC’s prior approval is required. The requirements for SFC-licensed VATPs are set out in the SFC Circular on staking services provided by virtual asset trading platforms (SFC Staking Circular) and its Appendix contains the conditions that the SFC will impose on the licences of VATPs allowed to offer staking services. The SFC’s requirements for SFC-authorised funds staking virtual assets are set out in the SFC Circular on SFC-authorised funds with exposure to virtual assets. This allows SFC-authorised funds to stake virtual assets through licensed VATPs and authorised institutions only and imposes a cap on liquidity risk. The move to allow virtual asset staking subject to regulations to protect retail investors in particular is consistent with the SFC’s Regulatory Roadmap for Hong Kong’s virtual asset market published in February 2025, which outlined the regulator’s aims to broaden the range of virtual asset products and services available in Hong Kong as part of the Hong Kong Government’s push to position Hong Kong as an international virtual asset hub.