Regulatory Win — HashKey Exchange Approved to Offer Crypto Staking in Hong Kong

In a major milestone for Hong Kong’s digital asset landscape, HashKey Exchange has received regulatory approval from the Securities and Futures Commission (SFC) to offer cryptocurrency staking services. 

This makes HashKey one of the first licensed virtual asset trading platforms in the region to introduce regulated staking, a move that signals growing institutional support and regulatory clarity for crypto innovations.

The approval comes shortly after the SFC released its official guidance on crypto staking for licensed virtual asset trading platforms (VATPs) and authorized investment funds. 

By allowing licensed platforms to facilitate staking, the SFC is aiming to foster innovation while maintaining investor protections—key to Hong Kong’s ambition to become a global hub for digital assets.

A Strategic First for HashKey

HashKey Exchange’s managing director, Terence Pu, emphasized the significance of the development, noting that it puts the company at the forefront of Hong Kong’s crypto evolution. “In the near future, investors will not only be able to hold Ether ETFs to obtain staking income but also directly hold ETH and earn additional income through our staking services,” Pu said.

This approval is timely, coming on the heels of Hong Kong’s endorsement of Ether and Bitcoin exchange-traded funds (ETFs) in April 2024. Those ETFs enabled institutional investors to access digital assets via in-kind subscriptions, a model that further bridges the gap between traditional finance and Web3. Now, with regulated staking in place, the returns from these investments could be enhanced through additional yield generation.

SFC’s Role in Shaping a Balanced Market

The SFC’s decision highlights its proactive approach to shaping a clear, secure, and investor-friendly regulatory framework for digital assets. By officially recognising and regulating crypto staking, the commission acknowledges not only its rising popularity, but also its value in securing blockchain networks and offering passive income to investors.

Importantly, the guidance outlines strict compliance requirements for platforms offering staking, including full transparency on risks, custody protections, and proper disclosures to clients. This aligns with global trends, where regulatory bodies are tightening controls over staking due to its growing appeal and associated risks.

A Boost for Institutional Confidence

The green light for staking is expected to bolster institutional participation in the Hong Kong crypto market. As more licensed exchanges like HashKey integrate regulated staking into their offerings, it could create new income opportunities for investors while reinforcing trust in the local crypto ecosystem.

Institutional adoption of staking has been rising globally, especially following Ethereum’s transition to a proof-of-stake consensus mechanism. Hong Kong’s approach could now serve as a model for other jurisdictions aiming to balance innovation with regulatory oversight.

What’s Next?

With HashKey exchange leading the charge, other licensed platforms in Hong Kong may soon follow suit in rolling out regulated staking services. Combined with recent ETF approvals and ongoing government support, this latest development reflects the region’s growing commitment to becoming a key player in the global digital asset economy.

As Hong Kong continues to refine its regulatory playbook, HashKey’s success in securing staking approval may very well mark the beginning of a more mature, investor-focused crypto era in Asia.