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, reminiscent of 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 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 should be accomplished in a regulated setting the place the protection of consumer digital belongings 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 trade 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 value variations between the totally different world exchanges.
Observe us on X, Facebook and Telegram
Do not Miss a Beat – Subscribe to get e-mail alerts delivered on to your inbox
Test Price Action
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Each day Hodl should not funding recommendation. Traders ought to do their due diligence earlier than making any high-risk investments in Bitcoin, cryptocurrency or digital belongings. Please be suggested that your transfers and trades are at your individual danger, and any losses chances are you’ll incur are your accountability. The Each day Hodl doesn’t suggest the shopping for or promoting of any cryptocurrencies or digital belongings, neither is The Each day Hodl an funding advisor. Please observe that The Each day Hodl participates in internet affiliate marketing.
Generated Picture: Midjourney
