Staking Services: Taxonomy, Risks and Regulation

<p><span>This article provides a comprehensive legal and regulatory analysis of blockchain staking and staking services within proof-of-stake (PoS) networks, positioning staking as a foundational infrastructure of contemporary crypto-asset markets and decentralized finance (DeFi). Staking is examined as the process by which crypto-assets are locked to participate in transaction validation and network security, through an incentive and sanction mechanism based on rewards and slashing. The paper develops a functional taxonomy of staking models, distinguishing between solo staking, delegated (non-custodial) staking, and custodial staking, and further analyses ancillary services such as validator-as-a-service, pooling, early unbonding, slashing insurance, and liquid staking derivatives.</span></p> <p>A structured risk taxonomy is proposed, separating risks affecting individual token holders (operational risk, counterparty risk, information asymmetry, custody and slashing exposure) from systemic risks for the blockchain ecosystem, including validator concentration, governance centralization, and potential threats to decentralization. From a legal perspective, the study assesses the regulatory treatment of staking under EU law, with particular reference to Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR), ESMA guidance, and comparative approaches adopted by the U.S. Securities and Exchange Commission and the Swiss Financial Market Supervisory Authority (FINMA). The analysis shows that staking, in its pure technical form, is generally not classified as a regulated financial service or crypto-asset service, while custodial and pooled staking arrangements may trigger licensing, prudential, and investor-protection requirements.</p> <p>The paper contributes to the scholarly literature on blockchain governance, crypto-asset regulation, and DeFi by offering a systematic framework for the legal qualification of staking, identifying open issues concerning contractual structures, consumer protection, and the regulatory perimeter of liquid staking and institutional participation. It is intended as a reference source for researchers in financial law, blockchain law, and regulatory studies seeking an in-depth overview of the taxonomy, risks, and legal treatment of staking in proof-of-stake blockchain networks.</p>