Hong Kong’s Securities and Futures Fee (SFC) has greenlit staking providers for licensed digital asset exchanges.
On Monday, the regulator issued regulatory steering for the brand new providers, noting that staking comes with potential advantages, comparable 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 stop errors related to the providers, 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 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 should be executed in a regulated setting the place the security of consumer digital property continues to be entrance and middle 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 biggest inventory alternate within the particular administrative area, announced the launch of its personal “Digital Asset Index Collection.”
The index goals to supply a dependable benchmark for the pricing of BTC and ETH within the Asian time zone whereas fixing the worth variations between the totally different world exchanges.
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