Hong Kong issues strict new crypto custody rules for cold wallets
Main Idea
The Hong Kong Securities and Futures Commission (SFC) has introduced strict new custody rules for cold wallets, emphasizing multi-factor authentication and smart contract-based solutions, as part of broader regulatory efforts to enhance crypto market safeguards.
Key Points
1. The SFC's new rules focus on strict multi-factor authentication for cold wallets and recommend smart contract-based custody solutions.
2. Examples of custody solutions include BitGo's Ethereum multisig smart contracts and Safe (formerly Gnosis Safe), which held $72 billion in smart accounts as of Q3 2024.
3. Coinbase identified Safe as the leading provider of multisig services in March 2024, indicating potential industry pushback against Hong Kong's regulations.
4. Hong Kong has been rapidly developing its crypto regulatory framework, including approving spot Bitcoin and Ether ETFs in April 2024 and implementing stablecoin laws effective August 1.
5. The regulatory efforts aim to widen market access while tightening safeguards across custody, products, and market structure.
Description
Hong Kong has introduced strict crypto custody rules, banning smart contracts for cold wallets and tightening security standards for custodians.
Latest News
- How to book a flight with crypto in the UAE: Step-by-step guide2025-08-15 15:32:54
- Taiwan’s first Bitcoin treasury Top Win raises $10M for BTC purchases2025-08-15 14:14:39
- You’re wrong about the GENIUS Act2025-08-15 13:48:42
- Galaxy secures $1.4B loan to fast-track Texas Helios AI datacenter2025-08-15 13:24:27
- BlackRock Bitcoin, Ether ETFs buy $1B as BTC price mostly fills CME gap2025-08-15 13:13:10