HashKey Secures Hong Kong Approval to Provide Staking, Enhancing Institutional PoS Attractiveness
The digital currency exchange HashKey, located in Hong Kong, has been granted regulatory approval to provide locking tokens services, an initiative that could greatly enhance the attractiveness of proof-of-stake (PoS) investments such as spot Ether exchange-traded funds (ETFs) to institutional investors.
The announcement was made on April 10, when HashKey disclosed that it had obtained authorization from the Hong Kong Securities and Futures Commission (SFC) to offer locking tokens services.
This development followed new guidelines issued by the SFC for Licensed Virtual Asset Trading Platforms (VATPs) and authorized funds on how to integrate locking tokens in a compliant manner.
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HashKey Emerges as One of Hong Kong’s Pioneering Regulated Exchanges to Provide Locking tokens
HashKey announced that it is currently “among the first” regulated exchanges in Hong Kong to provide such services.
The SFC’s decision was further backed by the China Securities Regulatory Commission (CSRC), which recognized the benefits of locking tokens for enhancing blockchain platform safety and for offering investors regulated income opportunities from their digital holdings.
“Investors will soon be able to not only acquire Ether ETFs for exposure but also receive earning yield rewards directly through our network,” stated HashKey managing director Terence Hu in a statement interpreted by the Asian media outlet PANews.
𝐇𝐚𝐬𝐡𝐊𝐞𝐲 𝐄𝐱𝐜𝐡𝐚𝐧𝐠𝐞, the compliant exchange in Hong Kong under @HashKeyGroup , 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐚𝐩𝐩𝐫𝐨𝐯𝐞𝐝 𝐚𝐬 𝐨𝐧𝐞 𝐨𝐟 𝐇𝐨𝐧𝐠 𝐊𝐨𝐧𝐠’𝐬 𝐟𝐢𝐫𝐬𝐭 𝐥𝐢𝐜𝐞𝐧𝐬𝐞𝐝 𝐭𝐫𝐚𝐝𝐢𝐧𝐠 𝐩𝐥𝐚𝐭𝐟𝐨𝐫𝐦𝐬 𝐭𝐨 𝐨𝐟𝐟𝐞𝐫 𝐬𝐭𝐚𝐤𝐢𝐧𝐠 𝐬𝐞𝐫𝐯𝐢𝐜𝐞𝐬.
— HashKey Group (@HashKeyGroup) April 10, 2025
Hong Kong approved its inaugural BTC and Ether ETFs in April of the previous year, enabling institutional investors to engage with digital assets via in-kind subscriptions.
This recent advancement bolsters the city’s status as a worldwide hub for regulated crypto finance by allowing ETF investors to generate passive yields—a feature that is currently unavailable in the U.S.
While the U.S. Securities and Trading protocol Commission sanctioned spot Ether ETFs in 2024, it refrained from permitting locking tokens mechanisms. Industry experts are uptrend that this could soon change.
With a pro-crypto SEC Chair now appointed under President Donald Trump’s administration, there are rising expectations that staking services could be permitted in U.S.-based Ether ETFs.
Bloomberg ETF analyst James Seyffart noted that U.S. approval for staking components within ETFs might be granted as early as May, potentially equalizing the landscape with Hong Kong’s regulatory progress.
A lot of inquiries about the timelines for Ethereum ETF Earning yield approvals. It’s possible they could receive approval for locking tokens soon, but the ultimate deadline is at the end of October.
Possible earlier deadlines before final approval (or denial) are in late May & late August https://t.co/EKPfC65IRF
— James Seyffart (@JSeyff) April 9, 2025
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Hong Kong Issues Crypto Licenses To PantherTrade And YAX, Increasing Total To Nine
Earlier in the year, the SFC granted operational licenses to crypto exchanges PantherTrade and YAX. This elevates the overall count of licensed virtual asset trading platforms (VATPs) to nine since the regulatory framework was established in mid-2024.
The SFC’s original target was to approve 11 platforms by the end of 2024. However, delays have extended this timeline into early 2025. Six other applicants, including WhaleFin Markets and Flying Hippo Technologies, are still under consideration.
The licensing framework is designed to enforce rigorous crypto law standards concerning investor safety, cybersecurity, and operational integrity, as Hong Kong aims to keep pace with quicker-moving jurisdictions like Singapore.
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Key Takeaways
- HashKey has positioned itself as one of the initial regulated exchanges in Hong Kong to provide locking tokens services following SFC authorization.
- This action may increase institutional interest in PoS assets such as Ether ETFs by providing opportunities for passive yields.
- With Hong Kong taking the lead on earning yield regulations, U.S. approval for similar ETF features could be on the horizon as soon as May.
The post HashKey Wins Hong Kong Approval to Offer Staking, Boosting Institutional PoS Appeal appeared first on 99Bitcoins.
