Hong Kong Enhances Digital Asset Custody with New Regulatory Framework

The Securities and Futures Commission (SFC) of Hong Kong has unveiled robust new standards for virtual asset custody, aiming to bolster investor protection and market integrity. These comprehensive regulations follow a comprehensive regulatory review that identified weaknesses in some existing platforms’ control measures, following global custody failures that highlighted the urgent need for more stringent oversight in the digital asset space. The SFC’s proactive approach seeks to prevent future incidents and ensure licensed virtual asset platforms operate with enhanced security measures, creating a safer environment for all involved.