Hong Kong SFC Clarifies Robust Custody Standards for Virtual Asset Trading Platforms to Safeguard Client Assets

According to Jinse Finance, the Hong Kong Securities and Futures Commission (SFC) issued a circular today to all licensed virtual asset trading platforms, outlining its requirements for the prudent custody of client virtual assets. This move lays a solid foundation for the industry to gradually adopt more advanced custody technologies under the ASPIRe roadmap. In the latest circular, the SFC lists several best practice examples and the minimum standards that virtual asset trading platform operators should meet, covering areas such as the responsibilities of senior management, the infrastructure and operation of client cold wallets, the use of third-party wallets, and real-time threat monitoring. In the future, these standards will also become core regulatory requirements for virtual asset custodians and will help promote the establishment of an effective virtual asset custody framework within the industry. (Jin10)