The Hong Kong Securities and Futures Commission (SFC) has clarified robust custody standards for virtual asset trading platforms to ensure the security of customers’ virtual assets.

Odaily Planet Daily News: The Hong Kong Securities and Futures Commission today issued a circular to all licensed virtual asset trading platforms, clarifying its requirements for the robust custody of client virtual assets, laying a solid foundation for the industry to gradually adopt more advanced custody technologies under the ASPIRe roadmap.

In its latest circular, the SFC outlined several best practices and minimum standards that virtual asset trading platform operators should meet, covering areas such as senior management responsibilities, the infrastructure and operation of client cold wallets, the use of third-party wallets, and real-time threat monitoring. These standards will also become core regulatory requirements for virtual asset custodians in the future and will help promote the establishment of an effective virtual asset custody framework within the industry. (Jinshi)