Hong Kong’s Securities and Futures Fee (SFC) has greenlit staking providers for licensed digital asset exchanges.
On Monday, the regulator issued regulatory steerage for the brand new providers, noting that staking comes with potential advantages, corresponding 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 providers, safeguard staked consumer digital belongings, and guarantee correct disclosure of dangers to which such staked belongings could also be topic.”
Julia Leung, the SFC’s chief government officer, says permitting regulated crypto exchanges to supply staking providers is a step ahead for Hong Kong’s crypto business.
“Broadening the suite of regulated providers and merchandise is essential to maintain the wholesome development of Hong Kong’s digital asset ecosystem. However the broadening have to be completed in a regulated setting the place the protection of consumer digital belongings continues to be entrance and heart of the compliance framework for providing such service.”
Final 12 months, Hong Kong permitted spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs).
In November, Hong Kong Exchanges and Clearing Restricted (HKEX), the biggest inventory change within the particular administrative area, introduced the launch of its personal “Digital Asset Index Collection.”
The index goals to offer a dependable benchmark for the pricing of BTC and ETH within the Asian time zone whereas fixing the worth variations between the totally different international exchanges.
Comply with us on X, Fb and Telegram
Do not Miss a Beat – Subscribe to get e-mail alerts delivered on to your inbox
Verify Value Motion
Surf The Day by day Hodl Combine
Generated Picture: Midjourney