- HashKey receives SFC approval to offer staking services.
- Approval covers ETH staking for spot ETFs.
What happened: HashKey secures SFC staking licence
Cryptocurrency exchange HashKey has obtained approval from Hong Kong regulators to offer staking services. The approval was granted by the Securities and Futures Commission (SFC) on 10 April 2025. It follows the SFC’s release of regulatory guidance on staking services for licensed Virtual Asset Trading Platforms (VATPs). It also applies to authorised funds. HashKey’s managing director, Terence Pu, said the firm can now provide Ethereum staking services for spot exchange‑traded funds (ETFs). The company also became one of the first regulated exchanges in Hong Kong to win this approval.
The SFC noted that the China Securities Regulatory Commission (CSRC) recognised the benefits of staking. These include improved blockchain security and regulated investor returns. Hong Kong approved its first Bitcoin and Ethereum ETFs in April 2024 under an in‑kind subscription model. The SFC said that ETF investors in Hong Kong can earn a passive yield on digital assets. In contrast, the US Securities and Exchange Commission allowed spot Ether ETFs but did not permit staking strategies. Bloomberg analyst James Seyffart expects US approval of staking services by May.
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Why it’s important: Institutional appeal and market impact
HashKey’s approval may broaden institutional use of staking in Asia. Regulated staking services can attract more professional investors to spot Ether ETFs. This may boost demand for ETH and deepen market liquidity. It also offers a regulated yield product for digital assets in Hong Kong. The move positions Hong Kong ahead of other markets in regulated staking. It sets a precedent for other VATPs to seek SFC approval. Institutional investors may now plan portfolios with staking income in mind. The approval may pressure US regulators to allow staking for Ether ETFs.
It underscores the role of clear rules in fostering innovation. Market participants can better assess staking risks under the new framework. Service providers will need robust custody and risk controls. The decision can influence global staking service standards. It may encourage further product development in the crypto sector. Overall, this step enhances Hong Kong’s status as a digital asset hub.
