Hong Kong Tightens Crypto Custody Rules Amid Rising Theft Concerns

Hong Kong’s Securities and Futures Commission (SFC) is introducing stricter regulations for virtual asset trading platforms (VATPs), aiming to bolster investor protection against growing crypto thefts. The new rules, part of the SFC’s ASPIRe strategy, will mandate increased investment in secure wallet infrastructure and third-party audits to ensure heightened asset protection. This policy response directly addresses over $3 billion in crypto theft incidents during the first half of 2025, impacting industry stability.