The Hong Kong Monetary Authority (HKMA) has launched guidelines for authorised institutions seeking to offer staking services for virtual assets. 

With these measures, which were rolled out through a circular, the regulator intends to ensure suitable internal controls, transparency, and risk management. Additionally, the HKMA’s initiative comes amid scaling the adoption of digital assets and proof-of-stake blockchain protocols. Staking services include committing or locking client-owned virtual assets to assist blockchain validation processes, in return creating rewards.

The HKMA’s newly released guidelines apply to authorised institutions and their locally integrated subsidiaries providing these solutions through…