The Hong Kong Securities and Futures Commission (SFC) has announced new measures aimed at improving customer asset protection on licensed cryptocurrency platforms.
New Requirements from SFC
In the new guidelines, the SFC emphasizes the need to enhance asset protection practices on cryptocurrency platforms. This comes in light of recent incidents that exposed vulnerabilities and led to significant losses for customers. The regulator also highlighted deficiencies in control measures against cyber threats on some platforms.
Control and Accountability of Platforms
The directive outlines the responsibilities of the management on cryptocurrency platforms, as well as requirements for cold wallet infrastructure, third-party service oversight, and real-time threat monitoring. Platforms are urged to reassess their custodian practices to enhance asset protection.
Hong Kong Amid Global Changes
While mainland China maintains its ban on cryptocurrency trading, Hong Kong seeks to attract businesses through licensing exchanges. The new asset protection directive is an essential part of this infrastructure, which took effect immediately.
The measures announced by the SFC represent a significant step toward building a reliable asset protection framework, which may lead to increased trust and participation in regulated markets.
