Hong Kong Strengthens Custody Regulations for Virtual Asset Exchanges… "Full-Scale Establishment of Market Safety Net"
Summary
- Hong Kong announced it would significantly strengthen custody regulations for virtual asset exchanges.
- The new guidelines reportedly mandate investment in secure wallet infrastructure, ensuring transparency, and segregated custody of assets.
- The outlet analyzed that such regulations could help secure investor confidence and potentially become a global regulatory benchmark in the future.
Hong Kong is significantly tightening custody (custody) regulations for virtual asset (cryptocurrency) trading platforms.
According to CoinKu, a media outlet specializing in virtual assets, on the 16th (local time), the Hong Kong Securities and Futures Commission (SFC) announced that it would introduce strengthened custody guidelines for Virtual Asset Trading Platforms (VATP). These guidelines, part of the SFC's digital asset strategy, require ▲investment in secure wallet infrastructure ▲ensuring transparency through third-party audits ▲strict segregation of customer assets and exchange assets.
Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong, explained, "Custody services for virtual assets are basically supervised by the SFC, but if banks are involved, the Hong Kong Monetary Authority (HKMA) will also play a comprehensive supervisory role."
The outlet analyzed, "If Hong Kong can gain investor confidence through strengthened regulations, it could serve as a (global) regulatory benchmark for other regions in the future."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.![[Exclusive] FSS to examine ZKsync coin that surged '1,000%' in three hours](https://media.bloomingbit.io/PROD/news/1da9856b-df8a-4ffc-83b8-587621c4af9f.webp?w=250)
