Hong Kong has introduced new staking laws, bringing a significant change in the crypto market. These rules will be applied on Crypto exchanges and local funds which are included in the stacking of digital assets. This step is part of the attempt to make Hong Kong a global hub for web3 and digital assets. If you are interested in other news related to Crypto Alternate, then our website Crypto exchanges You can study in the section.
The main objective of new staking rules
Hong Kong’s Securities and Futures FEE (SFC) introduced this new guidelines for Crypto exchanges to increase the transparency and security of stacking services. The move aims to create a secure and regulated environment for investors.
Compulsory conditions for crypto exchanges
Under the new rules, Crypto exchanges must receive Written Commendation from SFC before starting staking services. In addition, the exchanges will have to maintain control over virtual assets made stake and will not be allowed to hand over a third party.
Important disclosure for investors
The platforms providing stacking services will have to clear their customers about all risk, fees structure, minimum lock-up periods, unstacing process and custodial arrangements. This will give the investors complete information about potential risk.
New guidelines for crypto fund operators
The SFC has also issued a similar circular for the crypto fund operators that invest in digital assets. These funds can only invest in virtual assets on SFC-Pprproved Platforms and do not have permission for leverage exposure.
Hong Kong’s Vision for Web3 Future
SFC’s Govt Director, Christina Choi said that Hong Kong is committed to support the web3’s future. He told that the web3 is currently in the development phase and it will take time to understand its entire potential.
Conclusion
New staking rules offered by Hong Kong Cryptocurrency There is a new direction in the industry. This rule will not only promote the security of investors, but will also help Hong Kong to install Hong Kong as a global hub for digital assets. This change in Crypto Market is expected to open the way for new appearances.
