Key takeout
- Hong Kong’s SFCHá has introduced new standards to enhance management of virtual assets on its licensed trading platform.
- This guidance mandates stronger wallet infrastructure, access control, and management oversight to address global security risks.
It is held by Hong Kong’s Securities and Futures Commission (SFC). Issued a circular shape All Licensed Virtual Asset Trading Platform (VATP) that outlines minimum standards and good practices for protecting client digital assets.
Measures introduced under the “safeguard” pillar of SFC’s Aspire roadmap correspond to recent findings from targeted regulatory reviews and a series of well-known custody disorders on overseas platforms. These incidents reveal weaknesses in wallet infrastructure, transaction validation processes, and access control.
SFC aims to increase industry-wide custody resilience and develop Hong Kong’s virtual asset sector with safe and sustainable footing by setting clear expectations in areas such as senior management accountability, secure cold wallet operations, third-party wallet monitoring, and real-time threat monitoring.
“In order for Hong Kong to promote a competitive, sustainable and reliable digital asset ecosystem, client asset protection must always remain a top priority for all licensed VATPs.
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