Hong Kong regulator is considering allowing ETF issuers to stake Ethereum
The Hong Kong Securities and Futures Commission (SFC) has held discussions with crypto exchange-traded fund issuers about providing staking services via licensed platforms.
Hong Kong regulator is considering allowing ETF issuers to stake EthereumNews
The Hong Kong Securities and Futures Commission (SFC) is considering allowing issuers of Ethereum (ETH) ETFs to stake Ethereum and generate passive income.
According to a report published by Bloomberg, the financial regulator is exploring whether fund issuers should be allowed to stake Ethereum #ETH:
This comes after Hong Kong approved the launch of a Bitcoin ETF
BTC
$67,55
Earlier this year, more than three months after the US allowed the launch of ten Bitcoin exchange-traded funds.
The authority has reportedly discussed with issuers of cryptocurrency ETFs how to provide staking services via licensed platforms, after receiving proposals in recent weeks. Bloomberg reported that the financial regulator is currently in discussions and there is no specific timeline for implementation.
The authority's new move differs from the policy followed by the US Securities and Exchange Commission (SEC), as the US authority considers that staking services constitute an investment contract and violate securities laws.
This has been clearly demonstrated by the recent adjustments made by major financial institutions, which have applied for Ethereum ETFs. For example, Fidelity removed the staking service from its most recent order.
Cryptocurrency staking services allow token holders to lock their crypto assets for a specified period of time. In return, traders earn a percentage of the locked tokens as a reward for their support. There are many staking services that allow users to store their tokens with the help of third parties.
