Summary
TLDR: The Hong Kong Monetary Authority issued a circular targeting crypto custody platforms, requiring authorized institutions to follow guidelines for managing digital assets securely. The Securities and Futures Commission is also regulating virtual asset trading platforms to create a safe environment for investors. Hong Kong aims to be a digital asset hub while ensuring investor protection and compliance with global standards.
Key Points
1. The HKMA issued a new critical circular for crypto custody platforms, establishing a framework for custodial services for digital assets.
2. AIs in Hong Kong are required to conduct risk assessments, formulate policies, and maintain distinct governance structures for digital asset custody.
3. The SFC has set a deadline for all crypto exchanges in Hong Kong to obtain or apply for a VATP license by February 29, emphasizing the importance of trading through licensed platforms for investor protection.