Hong Kong SFC strengthens crypto ties with UAE, lifts staking ban
By: cryptosheadlines|2025/05/07 16:30:07
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Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com Hong Kong’s Securities and Futures Commission (SFC) is expanding its international footprint, with senior officials visiting the UAE last week to engage in regulatory discussions on virtual assets.According to a May 6 announcement, Executive Director of Licensing and Fintech Christopher Yip and Head of Fintech Elizabeth Wong met with key UAE regulators, including the Securities and Commodities Authority, the Financial Services Regulatory Authority (Abu Dhabi), and the Dubai Financial Services Authority.Focus on Cross-Border CollaborationThe meetings focused on regulatory frameworks and the shared challenges of supervising virtual asset firms. The visit falls under the SFC’s ASPIRe initiative, which outlines Hong Kong’s digital asset and fintech regulatory strategy. The delegation also held talks with local Web3 companies, stressing the importance of consistent regulation in mitigating systemic risk.“The SFC will continue to lead in the regulation of virtual assets,” said Yip, adding that “international collaboration and policy development” are central to Hong Kong’s fintech vision.SFC Lifts Ban on StakingIn April, the SFC updated its digital asset framework, allowing licensed crypto platforms to offer staking services—a reversal of the ban introduced in mid-2023. The move was announced during the Web3 Festival and accompanied by a detailed circular outlining compliance expectations.New rules mandate that platforms maintain direct control of staked client assets and prohibit the use of third-party custodians. Operators must provide clear disclosures around lock-up periods, fees, and risks such as validator penalties, cyberattacks, or protocol vulnerabilities.Staking via third parties will be permitted only after thorough due diligence and ongoing monitoring. For authorized virtual asset funds, staking is allowed solely through licensed platforms and approved custodians, subject to regulatory approval and exposure limits.The SFC’s latest moves signal a deliberate effort to align with other leading jurisdictions in shaping the future of digital asset oversight. As global regulatory standards emerge, jurisdictions offering compatible frameworks may gain a strategic edge in institutional crypto adoption.Source link
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