Hong Kong’s Securities and Futures Fee (SFC) has greenlit staking companies for licensed digital asset exchanges.
On Monday, the regulator issued regulatory steerage for the brand new companies, noting that staking comes with potential advantages, equivalent to enhancing the safety of blockchain protocols whereas enabling customers to earn yields for his or her participation.
The SFC says that regulated entities ought to take precautions to handle investor dangers.
“They need to preserve measures to successfully forestall errors related to the companies, safeguard staked consumer digital property, and guarantee correct disclosure of dangers to which such staked property could also be topic.”
Julia Leung, the SFC’s chief govt officer, says permitting regulated crypto exchanges to supply staking companies is a step ahead for Hong Kong’s crypto trade.
“Broadening the suite of regulated companies and merchandise is essential to maintain the wholesome development of Hong Kong’s digital asset ecosystem. However the broadening have to be achieved in a regulated surroundings the place the security of consumer digital property continues to be entrance and heart of the compliance framework for providing such service.”
Final yr, Hong Kong approved spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs).
In November, Hong Kong Exchanges and Clearing Restricted (HKEX), the most important inventory alternate within the particular administrative area, announced the launch of its personal “Digital Asset Index Sequence.”
The index goals to supply a dependable benchmark for the pricing of BTC and ETH within the Asian time zone whereas fixing the value variations between the totally different world exchanges.
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