HashKey Approved To Offer Staking Services In Hong Kong

Hong Kong Virtual Asset Regulation Enters a New Stage

On April 10, 2025, the Hong Kong Securities and Futures Commission (SFC) approved the licensed exchange HashKey Exchange to launch compliant staking services, marking Hong Kong as the world’s first major financial center to incorporate staking within a regulatory framework.

This decision is based on the “Guidelines on Virtual Asset Trading Platforms and Fund Staking Activities” issued by the SFC on April 7, which clearly permits licensed platforms to provide on-chain yield services for investors under strict risk management. As of the announcement date, Hong Kong’s Ethereum spot ETF management scale has reached US$6 billion, and the opening of compliant staking is expected to add an additional 2 million ETH staked within the year, driving the global Ethereum staking rate to exceed 30%.

This regulatory breakthrough stems from the accelerated implementation of the “Product Innovation” pillar within Hong Kong’s “A-S-P-I-Re” roadmap, aiming to bridge traditional finance with on-chain economics. As one of the first approved institutions, HashKey is pioneering compliant staking services for Ethereum spot ETFs, and through its technical partner HashKey Cloud, has achieved 98% cold storage of assets to ensure user asset security.

Operation Mechanism and Regulatory Requirements for Compliant Staking

According to the SFC guidelines, compliant staking must meet three core requirements:

1. Independent Custody of Assets:
   The staked assets must be held by the licensed platform itself, with third-party custody prohibited, and a staked ratio cap must be established to control liquidity risk;

2. Technical Security Standards:
   The platform must set up a smart contract audit mechanism and maintain a validator uptime of over 99.9%;

3. Transparency of Information Disclosure:
   The platform must disclose the staking yield model, forfeiture risks, and unlocking periods to investors.

HashKey’s service design fully reflects regulatory intentions: users can choose to participate either by holding Ethereum ETF shares or by directly staking ETH, with an expected annual yield of 3%-6%. To address potential risks, the platform has introduced a dynamic staking ratio adjustment mechanism that automatically triggers an asset unlocking plan when ETH price fluctuations exceed 20%. Institutional investors can track the status of staked assets and yield data in real time via the JuCoin platform.

Institutional Empowerment of the Ethereum Ecosystem

The implementation of compliant staking brings about three structural changes to Ethereum:

1. Enhanced Security:
   The additional staked volume in the Hong Kong market is expected to increase the number of Ethereum network validator nodes by 15%, thereby boosting network decentralization;

2. Institutional Capital Entry:
   Long-term capital such as pension funds and family offices can access on-chain yields through compliant channels, with additional incremental capital exceeding US$3 billion anticipated within the year;

3. Innovation in Financial Products:
   Combining staking yields with ETFs may give rise to “yield-enhanced” derivatives, providing investors with risk-hedging tools.

It is worth noting that Hong Kong’s regulatory practices may force policy adjustments in other regions. The U.S. SEC has received an Ethereum ETF staking application submitted by Grayscale, and under the EU MiCA framework, staking rules are also being revised. In the context of the regulatory contest between the East and West, Hong Kong, with its first-mover advantage, is poised to become the Asia-Pacific hub of on-chain yields.

Future Challenges and Industry Evolution

Although the regulatory breakthrough brings opportunities, the market still needs to address the following risks:

• Technical Operational Risks:
  Continuous prevention is required for issues like smart contract vulnerabilities and cross-chain bridge attacks; the penalty incident in April 2024, which resulted in a loss of US$1.29 million on a particular platform, serves as a warning that risk control measures must be implemented proactively;
• Regulatory Arbitrage Opportunities:
  Unlicensed platforms may attempt to circumvent Hong Kong regulations by using offshore servers, and the SFC, in collaboration with the Hong Kong Monetary Authority, has established a cross-border regulatory cooperation group to strengthen enforcement;
• Competitive Pressure on Yields:
  If the U.S. approves Ethereum ETF staking, Hong Kong will need to maintain competitiveness by offering even lower service fees (the current average is 0.15%).

In the long term, compliant staking is expected to drive more innovative scenarios:

HashKey plans to support staking on public chains like Solana and Cardano within the year and to open up cross-chain yield aggregation. Additionally, it will pursue RWA integration so that real-world assets such as real estate and bonds can distribute yield through staking, thereby enhancing capital efficiency. Regulatory technology (RegTech) applications are also being prepared for launch; on-chain KYC tools and real-time tax calculation modules may become standard for next-generation staking services.