HKMA introduces guidelines for crypto custody service providers
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…
