HashKey receives Hong Kong approval to offer crypto staking services

Cryptocurrency change HashKey has obtained approval from Hong Kong regulators to offer staking services, probably broadening the institutional attraction of proof-of-stake investments such because the spot Ether exchange-traded funds (ETFs).

HashKey was granted approval on April 10 after the Hong Kong Securities and Futures Commission (SFC) offered regulatory steerage on staking services to Licensed Virtual Asset Trading Platforms (VATPs) and licensed funds, the corporate disclosed on social media.

HashKey mentioned it had develop into “one of the first” regulated Hong Kong exchanges to offer staking services.

Source: HashKey Group

The approval was granted after the China Securities Regulatory Commission (CSRC) acknowledged the potential advantages of crypto staking services, the SFC mentioned.

CSRC “is aware of the potential benefits of staking in enhancing the security of blockchain networks and allowing investors to earn returns from virtual assets in a regulated market environment,” the SFC mentioned, in accordance to a translated model of the announcement that appeared on Asian media outlet PANews.

Related: Crypto VCs are ‘especially bullish’ on DePIN, RWAs — HashKey Capital

Taking the lead on ETH staking

The SFC approval means HashKey can take the lead in providing staking services for spot Ether (ETH) ETFs, in accordance to the change’s managing director, Terence Pu.

“In the near future, investors will not only be able to hold Ether ETFs to obtain staking income but also directly hold ETH and obtain additional income through our staking services,” Hu mentioned in a translated model of his assertion.

Hong Kong authorized its first Ether and Bitcoin (BTC) ETFs in April of final 12 months, giving institutional traders entry to an in-kind subscription mannequin for digital belongings.

Hong Kong is forward of the curve in permitting ETF traders to earn a passive yield on their digital belongings. In the United States, the Securities and Exchange Commission (SEC) green-lighted spot Ether ETFs final 12 months however didn’t enable staking methods to be included.

For many US traders, staking is the lacking hyperlink that might make US-based Ether ETFs extra engaging to institutional traders.

With the election of US President Donald Trump and the set up of a pro-crypto SEC Chair, traders are rising assured that staking services are coming to the US Ether ETFs within the close to future.