• 11 industry leaders discuss effective ways to ensure compliant staking
• Companies should be aware of different regulations in different jurisdictions
• Properly disclose risks and procedures to inform users of their decision-making process
Ensuring Compliant Staking
As lawmakers start to eye staking protocols, companies must ensure they engage in the ongoing work of ensuring that their staking is compliant. Below, 11 members of Cointelegraph Innovation Circle discuss effective ways for companies to ensure compliant staking as the industry continues to evolve.
Companies can ensure compliant staking by conducting due diligence on the associated risks, establishing governance structures, monitoring activities, implementing transparent reporting and engaging with regulators while seeking legal advice.
Recent crackdowns on crypto staking have largely centered around vague service language and poorly documented processes. That’s why risks and procedures should be properly disclosed to ensure users have the information they need to make an informed decision. As such, leaders must be transparent about how staking works on their platforms so it can remain a viable pathway for their communities.
Consult a Lawyer
The safest way to remain compliant is to consult a crypto-focused and/or securities-focused lawyer in the area in which the project is operating. Regulations can change quickly, and there are nuances that a professional would both be aware of and know how to best navigate.
Companies should also be aware different jurisdictions will have different compliance rules. Also, staking protocols are not the only legal basis for staking; therefore, your legal team must watch any announcements and changes to the regulations in each jurisdiction accordingly.