Hong Kong SFC Tightens Custody Standards for Crypto Exchanges Under ASPIRe Roadmap
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.
The move comes after the regulator’s targeted review earlier this year found “inadequacies” in some current exchanges’ cybersecurity and custody controls. The guidelines also form the basis of expectations for virtual asset custodians…
