HashKey Receives Regulatory Approval for Staking Services
HashKey, a prominent cryptocurrency exchange, has recently gained regulatory approval from Hong Kong’s financial authorities to introduce staking services. This development is seen as a significant step toward enhancing the institutional attractiveness of proof-of-stake investments, especially regarding spot Ether exchange-traded funds (ETFs). The Hong Kong Securities and Futures Commission (SFC) issued this approval on April 10, following its provision of regulatory clarity on staking operations for Licensed Virtual Asset Trading Platforms (VATPs) and authorized investment funds, which HashKey announced via its social media channels.
Leading the Market in Staking Services
Becoming one of the early adopters among regulated exchanges in Hong Kong, HashKey is positioned to lead in offering staking services for Ether ETFs. Terence Hu, the managing director of HashKey, expressed confidence that this will allow investors to earn staking income not only through holding Ether ETFs but also directly from holding Ether (ETH) via their new staking options.
Hong Kong’s Strategic Positioning in Digital Assets
The approval aligns with the stance taken by the China Securities Regulatory Commission (CSRC), which recognizes the positive impact of crypto staking on enhancing the security of blockchain networks and providing a means for investors to earn returns regulated by market standards. This is reflected in a translation of the announcement shared by the Asian media outlet PANews, pointing to a calculated move to establish Hong Kong as a leader in the digital asset space.
Comparison with the U.S. Market
Just last year, Hong Kong embraced the debut of its first Ether and Bitcoin ETFs, allowing institutional investors to engage in an in-kind subscription model for these digital assets. This proactive approach places Hong Kong ahead of many global markets in offering ETF investors opportunities to earn passive income from their cryptocurrency holdings.
In contrast, the situation in the United States has been slower, wherein the Securities and Exchange Commission (SEC) approved spot Ether ETFs last year but has yet to sanction staking strategies within those frameworks. However, with a more favorable climate for crypto following the election of U.S. President Donald Trump and the appointment of a pro-crypto SEC chair, there is mounting optimism regarding the imminent inclusion of staking services for U.S.-based Ether ETFs. Projections by Bloomberg analyst James Seyffart suggest that the SEC might expedite these approvals as soon as May.
