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Regulation and Policy

Hong Kong’s New Rules for Crypto Custody: What You Need to Know

Hong Kong’s New Rules for Crypto Custody: What You Need to Know

The Hong Kong Monetary Authority (HKMA) issued comprehensive guidelines for local institutions on tokenization and digital asset custody.

Emphasizing rigorous risk assessment and governance, institutions must segregate client assets, implement contingency plans, and comply with anti-money laundering regulations.

Compliance is required within six months. These regulations align with Hong Kong’s bid to solidify its position as a leading crypto hub, following the launch of its licensing regime for virtual asset trading platforms in June 2023, with HashKey and OSL among the licensed platforms.

The HKMA’s guidelines, spanning 11 pages, provide a roadmap for navigating the complexities of digital asset custody in Hong Kong’s financial landscape.

Institutions are urged to allocate resources for effective governance and risk management, ensuring transparency and ethical conduct in their crypto custody services.

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The directive underscores the need for robust internal policies to address potential conflicts of interest, alongside measures to safeguard client assets and ensure uninterrupted access.

By adhering to these standards, institutions not only enhance their credibility but also contribute to Hong Kong’s broader objective of fostering innovation while upholding regulatory integrity in the burgeoning crypto space.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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