The Hong Kong Stock Regulator launched new custody requirements for license cryptography exchanges, reinforcing its commitment to protect customer assets as the city progresses its offer to become the Digital Assets Center of Asia.
In a circular issued on Friday, the Securities and Future Commission (SFC) Establish minimum standards for licensed virtual assets trade platforms (Vatps) Covering the responsibility of senior management, cold wallet operations, the use of third -party wallet solutions and threat monitoring in real time.
The measure occurs after the specific review of the regulator earlier this year found “deficiencies” in some cybersecurity and custody controls of current exchanges. Guidelines also form the basis of expectations for virtual asset custodians.
When they attach the expansion of the product with hard rules on asset protection, Hong Kong is looking to differentiate himself from the regional rival of Singapore, which has adopted a more restrictive position on retail cryptography services.
The announcement is directly related to the infrastructure and safeguard the pillars of the SFC’s aspiring strategy, presented in February in Coindesk’s 2025 consensus in Hong Kong, which describes a five -pointed plan to address the liquidity fragmentation, regulatory arbitration and market volatility by expanding the range of products and regulated services.
The impulse of custody follows a series of regulatory movements this year destined to expand access to the market while the supervision is adjusted.
In February, the regulator announced new license regimes for custody services and free sales trade, together with a margin derivative and trade review for virtual assets. In April, green rethink services were performed for exchanges and license funds, although under strict asset control requirements and risk dissemination.
