11 INDUSTRY LEADERS DISCUSS EFFECTIVE WAYS TO ENSURE COMPLIANT STAKING

Last updated: June 19, 2025, 20:38 | Written by: Mike Novogratz

The world of cryptocurrency is rapidly evolving, and with it comes increasing scrutiny from regulators worldwide. As even late-night talk show hosts begin to weigh in on events in the crypto industry, it s clear the public is increasingly paying attention to both theOne area particularly under the spotlight is crypto staking, a process where users lock up their digital assets to support a blockchain network and earn rewards in return.As even late-night talk show hosts take notice of crypto's potential and challenges, the pressure is on for companies to operate within a clear and compliant framework. Cheers to the Cointelegraph Innovation Circle for inviting me to discuss ways companies could ensure compliant staking programs, alongside other leaders in the Oleksandr Lutskevych en LinkedIn: 11 industry leaders discuss effective ways to ensure compliant stakingNavigating the complexities of staking compliance can seem daunting, but it's a crucial step to building trust and ensuring the long-term sustainability of the industry. In the world of crypto staking, transparency is key. Ensure compliant staking by disclosing risks, procedures, and monitoring activities.This is why Cointelegraph Innovation Circle invited 11 industry leaders to share their insights on how companies can effectively ensure compliant staking programs. 11 industry leaders discuss effective ways to ensure compliant staking. 11 industry leaders discuss effective ways to ensure compliant staking Staking protocols are subject to evolving andTheir advice offers a multilayered approach, covering everything from due diligence and governance to monitoring and regulatory engagement.By understanding and implementing these strategies, businesses can navigate the ever-changing regulatory landscape, minimize risks, and contribute to a more secure and transparent future for crypto staking.Let’s delve into their expert opinions and explore actionable steps you can take today.

Understanding the Evolving Regulatory Landscape of Crypto Staking

The first and perhaps most important step in ensuring compliant staking is acknowledging the dynamic regulatory environment. 11 industry leaders discuss effective ways to ensure compliant staking Copy Link. Cointelegraph Subscribe. Collect. Share. WeChat.Regulations surrounding staking protocols are constantly evolving and vary significantly across jurisdictions. Get the latest finance, business and markets news directly to your inbox.Staying informed is paramount.

Monitoring Legal Requirements

According to experts, continuous monitoring of new and changing legal requirements is essential. Industry leaders are leaning into crypto staking. Staking purely as a consensus mechanism to secure a blockchain network should clearly fall outside the securities laws.Companies should establish a system for tracking regulatory updates from different jurisdictions. Staking protocols are subject to evolving and varying regulations, so be prepared to monitor and meet new legal requirements.This system might involve:

Subscribing to legal newsletters and industry publications.
Participating in industry events and webinars.
Engaging with legal counsel specializing in crypto regulations.

Being proactive in understanding the rules is better than reacting to enforcement actions.

Engaging with Regulators

Direct engagement with regulators is another crucial aspect.By initiating conversations and seeking guidance, companies can demonstrate their commitment to compliance and gain clarity on specific requirements.This proactive approach can help shape future regulations and foster a collaborative relationship between the industry and regulators.

Building a Robust Governance Structure for Staking Compliance

A well-defined governance structure is the backbone of any compliant staking program.This structure should clearly outline roles, responsibilities, and decision-making processes related to staking activities.

Establishing Clear Policies and Procedures

Clearly defined policies and procedures are essential for guiding staking operations. Altszn.com provides the latest news, resources and insights on Bitcoin, Ethereum, Solana, DeFi, Web3, NFTs and other cryptocurrency markets.These should cover all aspects of the process, including:

Selection of staking providers.
Risk management protocols.
Security measures.
Compliance monitoring.

These policies should be documented, regularly reviewed, and easily accessible to all relevant personnel.

Implementing Internal Controls

Robust internal controls are necessary to ensure adherence to policies and procedures.This includes:

Segregation of duties to prevent conflicts of interest.
Regular audits of staking activities.
Automated monitoring systems to detect anomalies.

By implementing strong internal controls, companies can minimize the risk of non-compliance and ensure the integrity of their staking programs.

Conducting Due Diligence on Staking Risks and Providers

Thorough due diligence is critical for identifying and mitigating potential risks associated with crypto staking.This process should involve assessing both the technical and legal aspects of staking protocols and providers.

Evaluating Technical Risks

Technical risks can include vulnerabilities in the staking protocol, smart contract bugs, and security breaches.To mitigate these risks, companies should:

Conduct thorough code audits by reputable security firms.
Implement robust testing procedures.
Monitor the network for potential vulnerabilities.

Assessing Legal and Regulatory Risks

Legal and regulatory risks are equally important to consider. 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.This involves assessing the potential for regulatory actions, changes in legislation, and legal challenges.Companies should:

Seek legal advice from experienced attorneys.
Monitor regulatory developments in relevant jurisdictions.
Ensure compliance with applicable laws and regulations.

Choosing Reliable Staking Providers

Selecting the right staking provider is crucial for minimizing risks.Companies should evaluate providers based on their:

Reputation and track record.
Security measures and infrastructure.
Compliance policies and procedures.
Financial stability.

A thorough vetting process can help ensure that the staking provider is a reliable partner.

Prioritizing Transparency and Reporting in Staking Activities

Transparency is key to building trust and demonstrating compliance. Staking protocols are subject to evolving and varying regulations, so be prepared to monitor and meet new legal requirements. As even late-night talk show hosts begin to weigh in on events in the crypto industry, it s clear the public is increasingly paying attention to both the potential and challenges of investing in crypto. Of even more immediate concern to crypto companies, though, areCompanies should prioritize clear and comprehensive reporting of their staking activities.

Disclosing Risks and Procedures

Transparency requires open communication about the risks involved in crypto staking and the procedures used to manage those risks.This includes disclosing:

Potential losses due to market volatility.
Risks associated with specific staking protocols.
Security measures in place to protect assets.

Clear and accessible information empowers users to make informed decisions.

Providing Regular Reports

Regular reports should be provided to stakeholders, including users, investors, and regulators. 11 industry leaders discuss effective ways to ensure compliant stakingThese reports should include:

Key performance indicators (KPIs).
Compliance metrics.
Audit findings.
Updates on regulatory developments.

Transparent reporting builds confidence and demonstrates accountability.

Taking a Multilayered Approach to Staking Compliance

The advice from industry leaders consistently points to the need for a multilayered approach to ensuring compliant staking. As regulators 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. Take a multilayered approachThis involves integrating various strategies and technologies to create a comprehensive framework.

Combining Technology and Expertise

Technology plays a critical role in monitoring and managing staking activities.This includes using:

Blockchain analytics tools to track transactions.
Automated monitoring systems to detect anomalies.
Secure storage solutions to protect assets.

However, technology alone is not enough. A recent article from the Cointelegraph Innovation Circle discussed the topic of compliance in staking protocols and included our managing partner SherazExpertise in legal, regulatory, and technical matters is also essential.Companies should build a team of experts who can provide guidance and support.

Adopting a Risk-Based Approach

A risk-based approach involves identifying and prioritizing risks based on their likelihood and potential impact.This allows companies to allocate resources effectively and focus on the most critical areas.

This approach typically involves:

Identifying potential risks (e.g., regulatory changes, security breaches, smart contract vulnerabilities).
Assessing the likelihood and impact of each risk.
Developing mitigation strategies for high-priority risks.
Regularly reviewing and updating the risk assessment.

By adopting a risk-based approach, companies can optimize their compliance efforts and minimize potential losses.

Addressing Common Questions About Compliant Staking

As the industry matures, several common questions arise regarding compliant staking. Cheers to the Cointelegraph Innovation Circle for inviting me to discuss ways companies could ensure compliant staking programs, alongside other leaders in the digital asset space. At CEX.IO, weHere are some answers to those frequently asked questions.

Is Staking a Security?

The question of whether staking constitutes a security is a complex legal issue. Companies can ensure compliant staking by conducting due diligence on the associated risks, establishing governance structures, monitoring activities, implementing transparent reporting andIt often depends on the specific characteristics of the staking protocol and the applicable laws in a given jurisdiction.While some argue that staking purely as a consensus mechanism to secure a blockchain network should fall outside securities laws, the reality is often more nuanced.

The SEC (Securities and Exchange Commission) in the United States, for example, has taken the position that certain staking programs may constitute investment contracts and thus be subject to securities regulations. BTCUSD Bitcoin 11 industry leaders discuss effective ways to ensure compliant staking Staking protocols are subject to evolving and varying regulations, so be prepared to monitor and meet newFactors that might influence this determination include:

Whether the staking rewards are derived primarily from the efforts of others (e.g., the staking provider).
The level of control and management exercised by the staking provider.
The marketing and promotion of the staking program.

Given the uncertainty in this area, companies should seek legal advice to determine the appropriate regulatory treatment of their staking programs.

How Can I Ensure My Staking Activities Are Compliant with KYC/AML Regulations?

Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations are crucial for preventing illicit activities in the crypto space.To ensure compliance with these regulations, companies should:

Implement robust KYC procedures to verify the identity of users.
Monitor transactions for suspicious activity.
Report suspicious activity to the relevant authorities.
Comply with applicable sanctions regimes.

Utilizing specialized KYC/AML compliance tools and partnering with reputable compliance firms can streamline this process.

What are the Penalties for Non-Compliant Staking?

The penalties for non-compliant staking can be severe, ranging from fines and cease-and-desist orders to criminal charges. I've been quoted in the piece titled 11 Industry Leaders Discuss Effective Ways to Ensure Compliant Staking, which delves into the complex but crucial topic of staking compliance. I had the opportunity to contribute my thoughts and experience fromThe specific penalties will depend on the nature of the violation and the applicable laws in the relevant jurisdiction. Ways Restaurants Can Create a Welcoming Atmosphere; Exploring the Different Parts of a Server Rack; How To Foster Inclusivity in Your Workplace; Citadel:Honey Bunny Official Trailer 2In addition to legal penalties, non-compliance can also damage a company's reputation and erode trust among users and investors.

Staying Ahead of the Curve in Staking Compliance

In the rapidly evolving world of crypto staking, staying ahead of the curve requires continuous learning, adaptation, and collaboration.Companies must embrace a proactive approach to compliance and be prepared to adjust their strategies as the regulatory landscape changes.

Participating in Industry Discussions

Active participation in industry discussions is essential for staying informed and influencing the development of best practices.This includes:

Attending industry conferences and events.
Joining industry associations and working groups.
Contributing to open-source projects.

By engaging with peers and experts, companies can gain valuable insights and contribute to a more collaborative and compliant industry.

Embracing Innovation

Innovation can play a crucial role in enhancing compliance.This includes exploring new technologies and approaches, such as:

Decentralized identity solutions for KYC/AML.
Privacy-enhancing technologies for data protection.
Automated compliance tools for monitoring and reporting.

By embracing innovation, companies can streamline their compliance efforts and stay ahead of emerging challenges.

Conclusion: Key Takeaways for Ensuring Compliant Staking

As the cryptocurrency industry continues to mature, ensuring compliant staking is not just a best practice, but a necessity for long-term success.The insights from the 11 industry leaders highlight the importance of a proactive, multilayered approach. 11 industry leaders discuss effective ways to ensure compliant staking cointelegraph.com, UTC As even late-night talk show hosts begin to weigh in on events in the crypto industry, it s clear the public is increasingly paying attention to both the potential and challenges of investing in crypto.This includes staying informed about evolving regulations, building a robust governance structure, conducting thorough due diligence, prioritizing transparency, and embracing innovation.By implementing these strategies, companies can navigate the complexities of the regulatory landscape, minimize risks, and contribute to a more secure and transparent future for crypto staking.Remember, a compliant staking program protects not only your business but also your users, fostering trust and ensuring the sustainable growth of the crypto ecosystem. 11 industry leaders discuss effective ways to ensure compliant staking UTC As even late-night talk show hosts begin to weigh in on events in the crypto industry, it s clear the public is increasingly paying attention to both the potential and challenges of investing in crypto.The key takeaways are: continuous monitoring of legal requirements, transparent reporting, and a willingness to adapt to the ever-changing crypto landscape.Don't wait for regulations to catch up - take action today to build a compliant staking framework and secure your place in the future of finance. As regulators 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.Ready to take the next step?Engage legal counsel specializing in crypto regulations and begin developing your comprehensive compliance strategy today.