Hong Kong’s SFC sets new custody standards for crypto trading platforms

Hong Kong’s Securities and Futures Fee (SFC) has a round issued For all licensed digital belongings commerce platforms (BATPs) that define minimal requirements and good practices for shielding buyer digital belongings.

The measures, launched below the “Safeguard” pillar of the Aspire route map of the SFC, reply to current findings from the supposed evaluation of the regulator and a sequence of excessive -profile storage disruptions on abroad platforms. These incidents have uncovered weaknesses within the pockets infrastructure, transaction confections and entry controls.

By drawing up clear expectations in areas such because the accountability of senior administration, the safe chilly pockets actions, exterior pockets supervision and real-time risk monitoring, the SFC goals to extend the resilience of the trade and to make sure that the digital asset sector of Hong Kong is creating itself

“With a view to promote Hong Kong a aggressive, sustainable and confidential digital belongings ecosystem, the safety of the shopper belongings should all the time stay a high precedence for all of the licensed BATPs, which might use the sensible information of the SFC, particularly of their custody practices,” mentioned Dr. Dr. Eric Yip, the SFCs.