Hong Kong Regulator Tightens Custody Standards for Licensed Crypto Exchanges
Main Idea
Hong Kong's Securities and Futures Commission (SFC) is tightening custody standards for licensed crypto exchanges following a regulatory review that identified weaknesses in cyber defenses.
Key Points
1. A regulatory review earlier this year found weaknesses in some exchanges’ cyber defenses.
2. The SFC issued new custody standards for licensed virtual asset trading platforms (VATPs).
3. The move is part of Hong Kong's strategy to become a digital asset hub in Asia.
4. The new standards include requirements for third-party wallet solutions and real-time asset protection.
Description
Hong Kong’s securities watchdog rolled out new custody requirements for licensed crypto exchanges, reinforcing its pledge to protect client assets as the city advances its bid to become Asia’s digital asset hub. In a circular issued Friday, the Securities and Futures Commission (SFC) set minimum standards for licensed virtual asset trading platforms (VATPs) covering senior management responsibility, cold wallet operations, the use of third-party wallet solutions and real-time threat monitoring. ...
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