Breaking News! Hong Kong's virtual money asset stake service is officially compliant.

The Hong Kong Securities and Futures Commission and the Monetary Authority jointly issued a supplementary circular on September 30, officially allowing intermediaries to provide clients with Hong Kong Virtual Money asset stake services, marking further improvement of the regulatory framework for the Hong Kong Virtual Money market and opening up new investment channels for institutional investors and retail clients.

Hong Kong Virtual Money Regulation Breakthrough: Analysis of Four Core Policies

On September 30, 2025, the Securities and Futures Commission (SFC) of Hong Kong and the Hong Kong Monetary Authority (HKMA) jointly released ["Supplementary Joint Circular on Virtual Asset Related Activities of Intermediaries"] ( https://apps.sfc.hk/edistributionWeb/gateway/TC/circular/doc?refNo=25EC50), which significantly optimizes the virtual asset business for licensed corporations and registered institutions. This policy update is based on market development needs and industry feedback, injecting new vitality into the Hong Kong Virtual Money market while maintaining investor protection.

Policy 1: Hong Kong Virtual Money Asset Stake Service Officially Opened

Intermediaries can now provide staking services to clients, but must comply with the following regulations:

Independent account operation: Must maintain an independent account through a platform licensed by the Securities and Futures Commission or an accredited financial institution.

Risk Disclosure Obligation: The complete disclosure of the Proof of Stake (PoS) participation risks is required.

Compliance framework consistency: Referencing existing Securities and Futures Commission licensed platforms and the staking regulations of virtual asset funds.

Transparent reward distribution: Clearly stating the reward allocation mechanism generated by the verification process.

This move allows Hong Kong Virtual Money investors to participate in blockchain verification processes and obtain returns through compliant channels, filling the regulatory gap of the past.

Policy 2: Lifting of Restrictions on Over-the-Counter Trading Services

The supplementary circular removes the original clause 4.2, allowing licensed corporations and registered institutions to execute virtual asset transactions through the over-the-counter (OTC) services provided by the licensed platform of the Securities and Futures Commission, significantly enhancing the flexibility and execution efficiency of large transactions.

Policy 3: Clear Exemption for Physical Subscription Mechanism

The circular clarifies that the following situations do not constitute "providing virtual asset trading services":

· Customers use Hong Kong Virtual Money to subscribe to or redeem investment products

· Subscribe or redeem Virtual Money funds in physical form

Intermediaries executing this type of business must meet three conditions:

Prior notification: Report in advance to the Securities and Futures Commission and the Monetary Authority.

Compliance Custody: Holding assets through licensed platforms or recognized financial institutions.

Anti-money laundering compliance: Strictly implement the provisions of Chapter 12 of the "Guidelines for Combating Money Laundering and Terrorist Financing".

Policy Four: Adjustment of Professional Investor Requirements

The circular specifies two exemption provisions:

Net asset requirement exemption: Institutional professional investors and qualified corporation professional investors do not need to pass the net asset test.

Simplified Risk Disclosure: The special risk statement for virtual asset futures contracts does not apply to the aforementioned categories of professional investors.

Hong Kong Virtual Money Market Continues to Benefit: International Banks Accelerate Layout

Against the backdrop of regulatory clarity, traditional financial institutions are accelerating their entry into the Hong Kong virtual money sector. On October 8, the cryptocurrency trading platform Bullish (NYSE: BLSH) listed on the New York Stock Exchange announced a partnership with Deutsche Bank, which will provide corporate banking services to its clients regulated by the Hong Kong Securities and Futures Commission and the Federal Financial Supervisory Authority of Germany.

Highlights of cooperation include:

Fiat Deposit and Withdrawal Channel: Providing seamless fiat deposit and withdrawal services for Bullish Exchange customers.

API Integration: Equipped with real-time reporting and instant payment features

Virtual Accounting Solutions: Enhancing Reconciliation Efficiency and Financial Transparency

Global expansion plan: In the future, the service coverage will be extended to regions such as the United States.

Bullish exchange president Chris Tyrer stated: "The collaboration with Deutsche Bank marks an important milestone in our banking network, providing customers with safer and more efficient services." Deutsche Bank's Head of Merchant Solutions, Kilian Thalhammer, emphasized: "This partnership reflects our ambition to become the global Hausbank of the emerging digital economy."

Implementation Points: Compliance Obligations that Intermediaries Must Note

According to the provisions of the supplementary circular, intermediaries must notify the regulatory authorities in advance before engaging in virtual money-related activities in Hong Kong, including:

· Change Service Customer Category

· First time allowing customers to access Virtual Money

· First time offering stake services

· First-time allowance for Virtual Money subscription/redemption products

· Significant changes in other business arrangements