Hong Kong Tightens Crypto Custody Rules After $1.5 Billion Hack

Facing a surge in crypto hacks, Hong Kong is implementing strict new regulations for cryptocurrency custody to bolster security. This includes banning smart contracts in cold wallets and mandating 24/7 security monitoring, after a recent Bybit hack that saw over $1.5 billion stolen by North Korean hackers. The measures mark a significant regulatory response to the escalating global threat landscape affecting crypto exchanges worldwide. These new rules aim to solidify Hong Kong’s position as Asia’s digital asset hub while ensuring investor confidence and deterring less secure operations.