Hong Kong’s securities watchdog rolled new custody requirements for licensed crypto exchanges, which strengthens its promise to protect client assets as the city promotes its bid to become Asia’s digital asset hub.
In a circular issued Friday, Securities and Futures Commission (SFC) Set the minimum standards for licensed virtual asset trading platforms (VATPS) Covers senior management responsibility, cold wallet operations, the use of third -party wallet solutions and real -time threat surveillance.
The move comes after the regulator’s targeted review earlier this year found “inadequacy” in the cyber security and custody control of some current exchange. The guidelines also form the basis for expectations of depot managers more broadly.
By linking product expansion with hard rules on asset protection, Hong Kong seeks to differentiate itself from regional rival Singapore, which has taken a more restrictive attitude to retail crypto services.
The message binds directly into the infrastructure and protection events in SFC’s Aspire strategy, which was revealed in February at Coindesk’s Consensus 2025 in Hong Kong, outlining a five-shaped plan to tackle liquidity fragmentation, regulatory arbitrage and market volatility, while the selection of regulated products and services.
The detention pressure follows a number of regulatory movements this year aimed at expanding market access while tightening oversight.
In February, the regulator announced new licensing regimes for trade and custody services without a prescription, along with a review of derivatives and margin trading for virtual assets. In April, the green -lit services for licensed exchanges and funds stabbed, albeit under close asset control and requirements for risk information.
