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Crypto Staking Now Allowed in Hong Kong Because Of Growing Global Competition
In a significant development, the Hong Kong Securities and Futures Commission (SFC) has announced new guidelines for licensed virtual asset trading platforms (VATPs) and exchange-traded funds (ETFs) to offer staking services. This decision is seen as a crucial step towards making Hong Kong a major player in the global cryptocurrency market.
According to the SFC, VATPs must obtain written approval from regulators before offering staking services, while crypto ETFs also require permission to do so. The regulatory body emphasized that these platforms must ensure they put in place necessary protections to prevent mistakes and keep clients’ staked assets safe. Transparency is also key, as risks involved with staking must be clearly explained.
This move marks a significant milestone in Hong Kong’s efforts to become a major hub for cryptocurrencies. In February, the government revealed a plan aimed at building the region’s cryptosystem. The plan includes 12 actions, such as considering new token listings, margin trading, derivatives, lending, borrowing, and staking.
The announcement is seen as a direct response to growing global competition in the cryptocurrency space, particularly with Donald Trump’s pro-crypto stance after becoming U.S. president. With this development, Hong Kong has officially opened its doors to the crypto industry.
Source: https://bitcoinik.com/crypto-staking-now-allowed-in-hong-kong-because-of-growing-global-competition/
