Hong Kong Tightens Crypto Custody Rules: New Regulations Impact Digital Asset Management

Hong Kong’s Securities and Futures Commission (SFC) has implemented stringent new rules for crypto custody, aiming to bolster security in the digital asset industry. These regulations mandate certified hardware security for cold wallets and ban the use of smart contracts within them. The aim is to reinforce Hong Kong’s position as a trusted hub for digital assets while addressing global security concerns and enhancing investor confidence.