The pass comes after the SFC’s evaluation earlier this 300 and sixty five days revealed damaged-down controls at some operators.
Key Takeaways
- Hong Kong’s SFC há introduced unique standards to toughen the custody of virtual property for licensed shopping and selling platforms.
- The guidance mandates stronger pockets infrastructure, get entry to controls, and administration oversight to address world security dangers.
Hong Kong’s Securities and Futures Payment (SFC) has issued a circular to all licensed virtual asset shopping and selling platforms (VATPs) outlining minimal standards and moral practices for safeguarding client digital property.
The measures, introduced under the “Safeguard” pillar of the SFC’s ASPIRe roadmap, reply to most unique findings from the regulator’s centered evaluation and a string of excessive-profile custody screw ups on in a foreign country platforms. These incidents possess exposed weaknesses in pockets infrastructure, transaction verification processes, and get entry to controls.
By environment obvious expectations in areas equivalent to senior administration accountability, steady chilly pockets operations, third-birthday party pockets oversight, and unswerving-time threat monitoring, the SFC aims to elevate commerce-wide custody resilience and make distinct that Hong Kong’s virtual asset sector develops on a steady and sustainable footing.
“In characterize for Hong Kong to foster a aggressive, sustainable and depended on digital asset ecosystem, client asset security have to continually remain a high priority for all licensed VATPs, which can leverage the SFC’s purposeful info to step up their custody practices especially amid heightened dangers globally,” talked about Dr Eric Yip, the SFC’s Executive Director of Intermediaries.
